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Business Recorder
04-07-2025
- Business
- Business Recorder
ZTBL privatisation: PC Board approves appointment of FA
ISLAMABAD: The Privatisation Commission (PC) Board, in its 236th meeting held Thursday under the chairmanship of Muhammad Ali, Adviser to the Prime Minister on Privatisation and chairman PC, approved the appointment of the Financial Advisor for the privatisation of Zarai Taraqiati Bank Limited (ZTBL). Following a competitive and transparent selection process, the board approved the appointment of a consortium of Financial Advisors (FA) led by Next Capital Limited for the ZTBL transaction. Other members of the consortium include Ijaz Ahmed & Associates (Legal), Baker Tilly Mehmood Idrees Qamar (Accounting & Tax), Executives Network International (ENI-HR), Bridge Public Relations (Media), Savills Pakistan (Pvt) Ltd (RE-Valuer) and Prima Global Consulting (Pvt) Ltd (Actuarial). PC tells Senate panel: PIA, Roosevelt and ZTBL lead the sell-off list The consortium secured the highest technical and financial ranking among six bidders, which included leading consortiums headed by Arif Habib Limited, AF Ferguson, AKD Securities Limited, Bridge Factor, and JS Bank. The board also approved the constitution of a Negotiation Committee to finalise the Financial Advisory Services Agreement (FASA) with the selected consortium. This development marks a significant step forward in the government's ongoing privatisation programme. The Privatisation Commission is actively advancing key transactions to promote efficiency, enhance private sector participation, and support broader financial sector reforms. The ZTBL is among the priority transactions in the current privatisation pipeline. The appointment of a top-tier consortium of FAs reflects the government's strong commitment to executing the process in a professional, transparent, and timely manner. Copyright Business Recorder, 2025
Business Recorder
28-06-2025
- Business
- Business Recorder
No price tag yet: govt denies $100mn valuation for Roosevelt Hotel
The Privatisation Commission of Pakistan on Saturday clarified that no base price has yet been determined for the proposed sale of the iconic Roosevelt Hotel in New York, refuting recent media reports claiming a $100 million valuation. 'The Privatisation Commission has noticed a misleading news report appearing on 27th June 2025 in certain news media outlets asserting that Pakistan has set $100 million as base price for the sale of Roosevelt Hotel. 'It is clarified that no base price has yet been determined for Roosevelt Hotel, New York's privatisation, which can only be set at the time of bidding,' read the statement. The commission highlighted that the report misquotes Adviser to the Prime Minister on Privatisation, Muhammad Ali, who had referred to an estimated initial partial payment to be made by the successful party on signing the agreement, expected during the current fiscal year. 'The base price and timing for realisation of total proceeds from the privatisation of Roosevelt Hotel will be based on transaction structure and final terms of the agreement approved by the government,' it said, with the finalisation of the transaction structure expected to be taken up in the next CCOP meeting. Last month, Defence Minister Khawaja Asif told the National Assembly that the government is exploring a joint venture to operate the Roosevelt Hotel, aiming for long-term economic benefits rather than selling the asset outright. Describing the nearly century-old 19-story hotel as 'a strategic gem,' Asif praised its prime Manhattan location and stressed the government's intent to retain ownership. 'Selling might patch a short-term fiscal wound,' he said, 'but a joint venture ensures Pakistan keeps a foot on that lucrative property while raking in steady profits.' The Roosevelt Hotel has long been viewed as Pakistan's prized overseas asset, with repeated calls over the years to sell it for quick cash. The landmark hotel closed in 2020 after sustaining massive financial losses associated with the COVID-19 pandemic. It became operational in 2023 as a shelter for asylum seekers after the Pakistani government inked a three-year $220 million lease agreement with the New York City government to operate the Roosevelt Hotel. In February 2024, the government signed a Financial Advisory Services Agreement (FASA) with a consortium led by Jones Lang La Salle Americas Inc (JLL) for the joint venture development of the Roosevelt Hotel. In November 2024, it was learnt that Qatar had explored partnering with Pakistan in managing the Roosevelt Hotel. The hotel, which opened in 1924, was named after President Theodore Roosevelt. It is located next to the Grand Central Terminal, the city's central train terminal.
Business Recorder
24-06-2025
- Business
- Business Recorder
PC to appoint FAs for more Discos to assess sell-off potential
ISLAMABAD: The Privatisation Commission (PC) has decided to appoint Financial Advisors (FAs) for four more power distribution companies—Hyderabad Electric Supply Company (HESCO), Sukkur Electric Power Company (SEPCO), Peshawar Electric Supply Company (PESCO), and Hazara Electric Supply Company (HAZECO)—to evaluate the potential for their privatisation. The decision was made during a meeting of the PC Board, chaired by Muhammad Ali, Advisor to the Prime Minister on Privatisation. The board's recommendations will now be forwarded to the Cabinet Committee on Privatisation (CCoP), led by Deputy Prime Minister and Foreign Minister Senator Ishaq Dar. Currently, three power distribution companies (DISCOs)—Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO)—are already in the privatisation pipeline, with Financial Advisors actively developing their privatisation models. Discos' sell-off/provincialisation: PMO directs Power Div. to expedite consultations In this second phase, the PC plans to engage FAs to advise on structuring private sector participation in HESCO and SEPCO. Proposals are now invited from qualified firms or consortia with proven experience in similar transactions. Interested parties can access the Request for Proposal (RFP)—including Terms of Reference (ToRs), Evaluation Criteria, and a draft Financial Advisory Services Agreement (FASA)—at: Applicants must submit both Technical and Financial Proposals via email and courier, along with a non-refundable processing fee of $1,000 (or equivalent in PKR), as outlined in the RFP. The deadline for submissions is July 22, 2025. The PC emphasized that this notice does not constitute a formal offer or commitment, and no express or implied warranties should be assumed. Copyright Business Recorder, 2025
Business Recorder
27-05-2025
- Business
- Business Recorder
Discos' sell-off/provincialisation: PMO directs Power Div. to expedite consultations
ISLAMABAD: The Prime Minister Office (PMO) has directed the Power Division to expedite the consultative process on Discos privatisation/ provincialisation and develop proposals through Task Force on Power Sector Reforms, well informed sources told Business Recorder. The finalized proposals shall be submitted to the Steering Committee on Privatisation of Discos. The Cabinet approved the outright privatisation of three DISCOs—Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO)—in its meeting held on August 13, 2024, marking the first phase of the privatisation initiative. ECC grills PD: Discos' T&D losses total Rs143bn till March The second phase will include Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Hazara Electric Supply Company (HAZECO). Meanwhile, Hyderabad Electric Supply Company (HESCO), Sukkur Electric Power Company (SEPCO), and Peshawar Electric Supply Company (PESCO) will be offered under a Concession Model through long-term agreements. Tribal Electric Supply Company (TESCO) and Quetta Electric Supply Company (QESCO) will be retained by the government. The Power Division, with support from the World Bank under Non-Lending Technical Assistance (NLTA), has completed a consolidated report detailing key deliverables, which has been submitted to the Privatisation Commission. The Power Division has met the Conditions Precedent (CPs) set by the Cabinet Committee on Privatisation (CCoP) and the Government of Pakistan, along with additional requirements identified by the World Bank as of January 31, 2025. The Financial Advisor for Phase-I DISCOs was appointed by the Privatisation Commission, with the Financial Advisory Services Agreement signed on February 11, 2025. The process is structured into four phases: (i) phase I: Sector-level due diligence, inception report, market sounding, and global experience review – completed by March 18, 2025; Phase II: Company-level due diligence (legal, technical, financial, environmental, and HR) – reports submitted May 8, 2025, currently under review; Phase III: Transaction preparation, including restructuring plans and preliminary financial modeling – due June 20, 2025; and Phase IV: Transaction implementation, including investor roadshows, information memoranda, bidder pre-qualification, bidding documents, contract awards, and financial closure – targeted for completion by January 15, 2026. On January 1, 2025, Prime Minister had directed Power Division to thoroughly examine the Provincialisation of DISCOs (ie transferring the ownership and control of Discos from the federal government to the provincial governments) in consultation with provinces and prepare a roadmap with the timelines for the review/approval of the Prime Minister. The Prime Minister Office had further directed that Power Division work simultaneously on the privatisation of Discos identified for privatisation in the first phase i.e. IESCO, FESCO and GEPCO. Power Division shall follow the agreed schedule and complete all the prior actions (conditions precedents) before January 31, 2205. The Committee! constituted by the Prime Minister on Tariff Reduction chaired by the Deputy Prime Minister/Foreign Minister Senator Ishaq Dar has been tasked to thoroughly review the proposal prepared by the Power Division while taking Provincial Governments on board. The firm up proposal shall be submitted for approval of the Prime Minister. Copyright Business Recorder, 2025
Business Recorder
26-05-2025
- Business
- Business Recorder
Discos' sell-off/provincialisation: PMO directs PD to expedite consultations
ISLAMABAD: The Prime Minister Office (PMO) has directed the Power Division to expedite the consultative process on Discos privatisation/ provincialisation and develop proposals through Task Force on Power Sector Reforms, well informed sources told Business Recorder. The finalized proposals shall be submitted to the Steering Committee on Privatisation of Discos. The Cabinet approved the outright privatisation of three DISCOs—Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO)—in its meeting held on August 13, 2024, marking the first phase of the privatisation initiative. ECC grills PD: Discos' T&D losses total Rs143bn till March The second phase will include Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Hazara Electric Supply Company (HAZECO). Meanwhile, Hyderabad Electric Supply Company (HESCO), Sukkur Electric Power Company (SEPCO), and Peshawar Electric Supply Company (PESCO) will be offered under a Concession Model through long-term agreements. Tribal Electric Supply Company (TESCO) and Quetta Electric Supply Company (QESCO) will be retained by the government. The Power Division, with support from the World Bank under Non-Lending Technical Assistance (NLTA), has completed a consolidated report detailing key deliverables, which has been submitted to the Privatisation Commission. The Power Division has met the Conditions Precedent (CPs) set by the Cabinet Committee on Privatisation (CCoP) and the Government of Pakistan, along with additional requirements identified by the World Bank as of January 31, 2025. The Financial Advisor for Phase-I DISCOs was appointed by the Privatisation Commission, with the Financial Advisory Services Agreement signed on February 11, 2025. The process is structured into four phases: (i) phase I: Sector-level due diligence, inception report, market sounding, and global experience review – completed by March 18, 2025; Phase II: Company-level due diligence (legal, technical, financial, environmental, and HR) – reports submitted May 8, 2025, currently under review; Phase III: Transaction preparation, including restructuring plans and preliminary financial modeling – due June 20, 2025; and Phase IV: Transaction implementation, including investor roadshows, information memoranda, bidder pre-qualification, bidding documents, contract awards, and financial closure – targeted for completion by January 15, 2026. On January 1, 2025, Prime Minister had directed Power Division to thoroughly examine the Provincialisation of DISCOs (ie transferring the ownership and control of Discos from the federal government to the provincial governments) in consultation with provinces and prepare a roadmap with the timelines for the review/approval of the Prime Minister. The Prime Minister Office had further directed that Power Division work simultaneously on the privatisation of Discos identified for privatisation in the first phase i.e. IESCO, FESCO and GEPCO. Power Division shall follow the agreed schedule and complete all the prior actions (conditions precedents) before January 31, 2205. The Committee! constituted by the Prime Minister on Tariff Reduction chaired by the Deputy Prime Minister/Foreign Minister Senator Ishaq Dar has been tasked to thoroughly review the proposal prepared by the Power Division while taking Provincial Governments on board. The firm up proposal shall be submitted for approval of the Prime Minister. Copyright Business Recorder, 2025
