Five government properties of the Earthquake Reconstruction and Rehabilitation Authority (ERRA) were sold on Monday for Rs95.4 million. Another 21 properties are to be sold in the coming days.
“According to the instructions of the prime minister we have started the process of privatisation which will only be successful through transparency between the stakeholders,” Federal Minister for Privatisation Mohammed Mian Soomro spoke at the auction ceremony for 26 government properties on Monday.
“This process will help reduce government debts and expenses as the properties of 19 government institutions are being privatised. After four years the process of auction is taking place,” he said.
A total reserve price of Rs6.2 billion has been decided for all the properties combined. The reserve prices of these five properties were set at over Rs140 million.
A reserve price is the lowest price quoted during an auction after which buyers quote their own price and the highest bidder gets the property. More government properties to be sold in the future.
The first property included in Monday’s auction was a 1,380 square-foot flat located at the PHA Foundation G-7 at a price of Rs15.2 million. The second was a 4.275 square-foot plot located near Pir Sohawa that sold for Rs19.2 million. Lastly, two plots within the Islamabad Country Club were sold for Rs30.5 million each.
A 2,642 square-foot apartment located in Centaurus Residency with a reserve price of Rs60 million has yet to be auctioned.
In the coming days, more government properties of the ERRA, WAPDA, ministry of aviation, ministry of industry and production, commerce division, and FBR are going to be auctioned.