Pakistan’s hospitality sector faces potential major restructuring. Pakistan Services Limited could see significant asset division under a proposed settlement. Therefore, PC Hotels split PSL arrangements would divide five properties between two entities. Sources say Thatta Cement and Fauji Foundation would receive different hotel assets specifically. This settlement addresses more than a year of legal disputes over roughly 56% voting stake ownership in PSL.
Parties have reportedly signed a memorandum of understanding recently. Under these terms, PC Karachi and PC Rawalpindi would transfer to Thatta Cement. Meanwhile, PC Lahore, PC Bhurban and PC Muzaffarabad would go to Fauji Foundation. However, no formal announcement has confirmed this settlement yet, and the transfers remain unconfirmed.
The dispute traces back to mid-2025 specifically. Hashwani Group, which acquired PSL in 1985, challenged transactions that left AKD Group Holdings and stockbroker Dawood Jan Muhammad controlling nearly 56% combined voting shares. On July 14, 2025, AKD Group and subsidiary AKD Securities acquired a 27.95% stake at PKR 700 per share. The following day, Muhammad acquired an additional roughly 28% stake at the same price. Hashoo Group characterized these transactions as a “hostile takeover.”
Complicating matters further, Murtaza Hashwani had pledged 5.2 million PSL shares as collateral for separate financing. Hashwani Group maintained these shares served only as security and prohibited any transfer to third parties.
Thatta Cement entered the dispute on October 14, 2025, acquiring roughly 28% stake and seeking fresh board elections. Sadruddin and Murtaza Hashwani challenged this before the Islamabad High Court, alleging the transactions violated the Companies Act 2017 and Securities Act 2015 illegally and fraudulently. The Hashwani side maintained they’d separately agreed to sell shares to Fauji Foundation.
The IHC subsequently suspended the proposed elections and restrained further share transfers, while barring Thatta Cement from interfering in daily management. Hashwani Group also sent legal notices questioning regulatory oversight to the SECP and Pakistan Stock Exchange.
Notably, PC Peshawar isn’t part of this dispute; Serena Hotels already purchased it separately through a consensual sale. PSL’s share price fluctuated sharply throughout, falling from a 52-week high of PKR 1,635 to PKR 799 before recovering to around PKR 830. Finally, uncertainty still surrounds whether and when this proposed PC Hotels split PSL settlement will receive formal announcement.
