6 financial advisers for SOEs privatisation programme pre-qualified

ISLAMABAD: In a significant step toward privatizing state-owned enterprises, Pakistan’s Privatization Commission Board on Wednesday pre-qualified a panel of six financial advisors to oversee upcoming transactions.

The board endorsed the selection of six firms for the panel, which includes Citigroup Global Markets Ltd (UK), J P Morgan, Alvarez & Marsal (UAE), EY Consulting LLC (Dubai), PWC-A F Ferguson & Co and BDO Ebrahim & Co (Pakistan). These firms will play a crucial role in facilitating the privatization process.

Instead of advertising for financial advisors for each transaction, the government will now select from this pre-qualified panel as needed, streamlining the process, an official confirmed.

The decision is part of the government’s five-year plan to transfer ownership of loss-making institutions to private entities.

Chaired by Federal Minister for Privatization Abdul Aleem Khan, the board approved several key financial and technical decisions concerning the ongoing privatization of major institutions, including Pakistan International Airlines (PIA), several distribution companies (Discos) and the Roosevelt Hotel in New York.

Minister Khan highlighted the importance of privatizing financially struggling institutions to alleviate the burden on the national exchequer. He emphazised that transparency would be a priority throughout the privatisation process and called for decisions that serve the national interest.

For the Roosevelt Hotel in New York, the board had appointed Jones Lang LaSalle Americas Inc. (JLL), a Chicago-based real estate management firm, as the financial advisor. JLL was tasked for conducting due diligence and exploring transaction options, such as a long-term lease, outright sale or joint venture with the private sector.

After reviewing JLL’s report, the board recommended a joint venture as the most suitable transaction structure for the Roosevelt Hotel. The Privatization Commission will now seek cabinet approval for this recommendation. Aleem Khan expressed satisfaction at the board’s performance and praised JLL for its comprehensive report. He voiced optimism that the government would secure a favorable deal for the Roosevelt Hotel.