The government of Pakistan has taken a significant step toward privatization of key infrastructure by forming a dedicated committee for the privatization of New Islamabad International Airport, Hyderabad Electric Supply Company (HESCO), and Sukkur Electric Supply Company (SEPCO). The decision was announced during a meeting of the Privatization Commission Board, chaired by the Prime Minister’s Adviser on Privatization, Muhammad Ali.

The meeting focused on accelerating the ongoing privatization agenda and implementing structural reforms in state-owned enterprises. A special transaction committee was constituted to oversee the privatization process for HESCO and SEPCO. This committee will be responsible for evaluating bids, structuring financial models, and ensuring transparency in the process.

The Privatization Commission Board also recommended ending the current privatization process for the House Building Finance Company. In its place, the board suggested relaunching the auction of the company’s 51 percent shares to attract new investors and improve efficiency in the bidding process. This move is expected to increase investor confidence and generate higher revenues for the government.

Similarly, the board reviewed the bid for the Pakistan Mortgage Refinance Company, which had received a bid of 4.2 billion Pakistani Rupees. However, this offer was rejected as it fell significantly short of the reference price of 13.55 billion Rupees. Officials indicated that the privatization process would be reopened to attract better offers that reflect the true market value of the company.

A major highlight of the meeting was the inclusion of the New Islamabad International Airport in the government’s privatization program. The board approved the adoption of a concession model for the airport’s privatization, which involves granting a private operator the right to manage, operate, and generate revenue from airport facilities under specific contractual terms. This model is expected to enhance operational efficiency while ensuring compliance with international aviation standards.

Importantly, the board decided to reject the government-to-government (G2G) model for the airport’s privatization. Instead, an open bidding process will be adopted to ensure transparency, competitive offers, and maximum returns for the public exchequer. Financial bids for the New Islamabad International Airport have already attracted attention, with reports indicating that several international companies, including Turkish firms, have submitted significant proposals.

Privatization of HESCO and SEPCO is also being pursued as part of a broader strategy to improve the efficiency of the power distribution sector in Pakistan. These companies, serving large populations in Sindh province, have faced operational challenges, including high transmission losses, aging infrastructure, and financial constraints. By involving the private sector, the government aims to introduce modern management practices, improve service delivery, and reduce the financial burden on public resources.

The newly formed transaction committee will play a critical role in designing the framework for these privatizations. Its responsibilities include finalizing the financial and operational structure, vetting potential investors, managing the bidding process, and recommending the final deal to the Privatization Commission Board. Experts believe that a structured and transparent process could significantly enhance investor confidence in Pakistan’s privatization agenda.

Officials emphasized that the privatization program is aligned with the government’s broader economic reform strategy, which seeks to reduce the role of the state in commercial enterprises while promoting private sector investment. Privatization is expected to help bridge fiscal deficits, mobilize capital, and improve the overall competitiveness of Pakistan’s economy.

Additionally, the board is keen on maintaining a balance between revenue generation and public interest. For instance, in the case of power distribution companies, the government plans to include specific provisions to protect consumers from sudden tariff hikes while allowing private operators to improve efficiency and profitability.

The privatization of New Islamabad Airport is considered a landmark initiative, given the strategic importance of the facility as a key international gateway to the country. Officials expect that a successful privatization will not only enhance airport operations but also attract international airlines, increase passenger traffic, and improve Pakistan’s standing in the global aviation sector.

In conclusion, the formation of a dedicated transaction committee for HESCO, SEPCO, and New Islamabad Airport marks a significant development in Pakistan’s privatization agenda. With the House Building Finance Company auction being relaunched and the Pakistan Mortgage Refinance Company’s bid process revised, the government is signaling its commitment to pursuing transparency, competitiveness, and efficiency in state asset management. Analysts suggest that these steps, if executed effectively, could pave the way for increased private investment, improved services in critical sectors, and enhanced fiscal stability for the country.