Privatization Commission Sets A Price of Rs. 2.25 Billion for Hotel Sale - Android

The Privatization Commission (PC) of the Pakistan board, headed by the Privatisation Minister, Mohammad Mian Soomro, has approved a minimum… Read More

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The Privatization Commission (PC) of the Pakistan board, headed by the Privatisation Minister, Mohammad Mian Soomro, has approved a minimum sale price of Rs. 2.25 billion for Services International Hotel, Express Tribune reported on Friday.

The decision was taken by the Commission on Thursday, which similar to several major privatization transactions, is falling behind deadlines. The government has undertaken about 16 transactions, but all of these are falling behind schedule.

The government has determined the value of the hotel based on the market value. The transaction committee had recommended a reserve price of Rs. 2.2 billion. However, the Privatization Ministry Spokesperson, Samreen Zehra, said that the board is yet to set the final price, adding that the matter would be taken to the Cabinet Committee on Privatisation (CCOP) for the final decision.

Six potential investors have pre-qualified for the bidding stage, the news report said.

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The government is eager to sell the hotel soon since no meaningful privatization transaction has taken place during its tenure spanning more than two and a half years.

Earlier, the government had sold 23 properties at a total cost of Rs. 1.11 billion. However, only ten buyers submitted the bid money of Rs. 920.8 million in respect of ten auctioned properties.

The PC board was informed that bidders for 13 properties failed to deposit the sale proceeds, and these properties would be auctioned again.

The government has also set up a committee to resolve the pending issues. The board was told that the bidders would be re-engaged to complete the due diligence process only after the resolution of different issues. The spokesperson also said that the privatization minister was holding weekly review meetings to address the outstanding issues.

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