The government has finalized the long-delayed sale of Lahore’s Services International Hotel (SIH) for Rs1.951 billion, concluding a privatization process that faced multiple hurdles over three years.
The deal was sealed following the resolution of a legal case by the Lahore High Court (LHC) in September 2024. The agreement, signed between the government and the buyer, includes 15 Kanal, 3 Marla, and 113 square feet of prime property on Upper Mall Road, Lahore. The site, featuring a four-story structure with a built-up area of 93,850 square feet, has been approved by the Lahore Development Authority (LDA) for commercial use.
The privatization process began with a public auction on August 26, 2021, where M/s Faisal Town (Pvt) Limited emerged as the highest bidder. The federal cabinet approved the transaction on October 27, 2021, and a Letter of Award (LoA) was issued in November. Despite the buyer’s full payment in January 2022, legal challenges, including a case filed by the Punjab Cooperative Board for Liquidation (PCBL) in December 2021, delayed the sale. The LHC resolved the case on September 20, 2024, allowing the transaction to proceed.
At the signing ceremony, Federal Minister for Privatization Abdul Aleem Khan called the deal a milestone for Pakistan’s privatization efforts. “The successful privatization of Services International Hotel will enhance the credibility of the Privatization Commission,” he said. “This achievement will pave the way for the timely completion of other cases, ensuring we meet our privatization objectives efficiently.”
Khan stressed the importance of reducing bureaucratic delays and fostering a business-friendly climate to attract private sector investment. “We must work collectively to revitalize underperforming state assets,” he added.