Pakistan's troubled housing finance sector is poised for a major shake-up as the government enlists a heavyweight consortium to steer the long-stalled privatisation of the House Building Finance Corporation Limited (HBFCL). The move signals a renewed push to offload the state-owned lender, whose earlier sale attempt collapsed over pricing disagreements. Main Developments On Sunday, the Privatisation Commission signed a Financial Advisory Services Agreement with a consortium led by KPMG, alongside corporate finance advisory Bridge Factor, legal firm Haidermota & Co., human resource firm HRSG, and Asiatic Public Relations for media affairs. The consortium will provide financial advisory, transaction structuring, and execution support to guide the privatisation process. Under the agreement, the financial adviser will conduct comprehensive due diligence of HBFCL, advise on an optimal transaction structure, carry out valuation, and support the commission throughout marketing and execution. This marks the second attempt to privatise the entity, following a failed first round where only one bidder—Pakistan Mortgage Refinance Company Limited—was pre-qualified. Read also: Pedestrian Street Plan Deepens Rawalpindi Parking Woes The previous bid was rejected by the Privatisation Commission for falling below the reference price approved by the federal cabinet, stalling the process. In February, the Cabinet Committee on Privatisation endorsed a revised framework, which includes evaluating structural options such as potential synergies or integration paths with other state financial entities like Zarai Taraqiati Bank Limited. Background HBFCL, a state-owned institution, has long been a key player in Pakistan's housing finance landscape, but its performance has been hampered by governance and efficiency issues. The privatisation push is part of a broader government strategy to divest from non-core assets and improve the sector's health. The earlier failed attempt highlighted the challenges of aligning government price expectations with market realities. The revised framework aims to address these hurdles by considering structural alternatives, including possible mergers or collaborations with other state-backed financial bodies. Why It Matters The privatisation of HBFCL is expected to leverage private-sector expertise, improve governance and operational efficiency, and facilitate greater access to housing finance. A stronger and more competitive HBFCL could expand financing opportunities, particularly for low- and middle-income households, supporting the government's objective of promoting affordable housing. Success would not only bolster the housing sector but also signal the government's commitment to economic reforms and fiscal discipline. Failure, however, could further erode investor confidence and delay much-needed housing finance expansion. What's Next The Privatisation Commission will work closely with the financial adviser and relevant stakeholders to ensure the transaction progresses in accordance with the approved process and regulatory requirements. The consortium will now begin due diligence and valuation, with the transaction structure to be finalised in the coming months. Observers will watch for how the revised framework addresses the previous pricing impasse and whether the consortium can attract viable bids. The outcome will be a litmus test for Pakistan's privatisation programme and its ability to unlock value in state-owned enterprises.