Pakistan is exploring the conversion and revival of inactive government-owned buildings into modern hotel facilities as part of a broader effort to promote tourism, attract investment and make better use of valuable public assets.
The idea is particularly relevant in Islamabad, where the government has been looking at ways to expand hotel capacity and improve facilities for international conferences, diplomatic events and tourists. Prime Minister Shehbaz Sharif directed authorities in January 2025 to prepare proposals for new modern hotels through joint ventures and public-private partnerships. Officials at the time also reported that pre-feasibility studies had been prepared for the restoration of inactive valuable government buildings in Islamabad.
The initiative reflects a growing focus on converting underutilized public properties into productive economic assets rather than allowing valuable buildings and land to remain unused.
Turning Idle Assets Into Economic Opportunities
Government-owned buildings can represent significant public investment. Some properties occupy valuable locations in major cities but may no longer be required for their original purpose.
Instead of leaving such buildings vacant, authorities can explore alternative uses that generate revenue and stimulate economic activity.
Converting suitable properties into hotels could provide an opportunity to preserve important buildings while giving them a new commercial purpose.
Such projects could include the renovation of historic government residences, unused administrative buildings, guest houses and other properties that meet structural, legal and planning requirements.
However, not every government building would necessarily be suitable for conversion. Structural condition, location, heritage status, security requirements and future government needs would all need to be assessed before any conversion takes place.
Islamabad at the Centre of the Plan
Islamabad is particularly important to the government’s hotel-development strategy.
The capital hosts diplomatic missions, international organizations, government delegations, business conferences and international events throughout the year. Demand for high-quality accommodation can increase significantly when major conferences and diplomatic gatherings take place.
In January 2025, Prime Minister Shehbaz Sharif emphasized the need for better hotels, hospitals and other facilities capable of supporting international-level conferences and events. He directed the Capital Development Authority (CDA) to prepare a comprehensive report for the construction of modern hotels through joint ventures and public-private partnerships.
The government was also informed that pre-feasibility reports had been prepared concerning the construction of new hotels and the revival of inactive government buildings.
This indicates that the concept is connected to a broader strategy for improving Islamabad’s hospitality infrastructure rather than simply converting buildings without planning.
Public-Private Partnerships
One of the most important elements of the proposed approach is the potential use of public-private partnerships (PPPs).
Under such arrangements, the government can make public land or buildings available while private-sector investors provide financing, expertise and hotel-management capabilities.
This can reduce the immediate financial burden on the government while allowing experienced hospitality companies to operate the properties.
A successful PPP model could also introduce international hotel standards, modern booking systems, professional management and improved customer services.
The government would still need to establish transparent agreements, protect public assets and ensure that the public receives appropriate financial benefits from the arrangements.
Boosting Tourism
Tourism is one of the sectors that could benefit significantly from additional hotel capacity.
Pakistan has considerable tourism potential, from the mountains of Gilgit-Baltistan and Khyber Pakhtunkhwa to the historical sites of Punjab and Sindh and the beaches and coastal areas of Balochistan.
However, tourism development requires more than attractive destinations. Visitors also need reliable accommodation, transportation, restaurants, healthcare facilities, security and other services.
Additional hotels could help address accommodation shortages and encourage more domestic and international tourists to travel.
Islamabad itself can serve as an important gateway for visitors travelling toward northern tourist destinations.
Supporting International Conferences
Modern hotels are also important for Pakistan’s conference and business-tourism industry.
International conferences can bring diplomats, investors, academics, business leaders and representatives of international organizations into the country.
These visitors require suitable accommodation and conference facilities.
The government has already highlighted the importance of international conferences in Islamabad and the need to improve facilities for foreign guests.
Expanding the capital’s hotel infrastructure could therefore support Pakistan’s diplomatic and economic objectives.
More international events could generate additional spending on accommodation, restaurants, transportation, shopping and other services.
Employment Generation
Hotel development can also create jobs.
A converted government building operating as a hotel would require employees in reception, housekeeping, food services, security, maintenance, administration and management.
Additional employment could be generated indirectly through suppliers, transportation companies, food producers, laundry services and tourism operators.
The construction and renovation phase would also create temporary employment for engineers, architects, contractors, electricians, plumbers and other skilled workers.
This makes hotel conversion potentially beneficial for both tourism and employment.
Preserving Valuable Buildings
Some government buildings have architectural or historical importance.
Rather than demolishing such structures, carefully planned conversion could preserve their character while giving them a commercially productive future.
A heritage building converted into a boutique hotel, for example, could become a tourism attraction in its own right.
Pakistan already has examples of government properties being opened to the public or converted for hospitality-related use. In 2019, the Punjab government opened Government House Murree to the public as a boutique heritage resort, describing the transformation of government buildings as part of an effort to reduce VIP culture.
Such examples demonstrate how public buildings can potentially be given new functions while retaining their architectural significance.
Financial Benefits for the Government
One major motivation behind the conversion of unused government assets is the possibility of generating revenue.
Government properties require maintenance, security and utilities even when they are not being used efficiently.
If a suitable building is converted into a commercially successful hotel, it could generate rental income, lease payments, taxes or profit-sharing revenue for the government, depending on the structure of the project.
The funds generated could potentially be directed toward public services, infrastructure or maintenance of other government assets.
However, financial viability would need to be established through proper feasibility studies.
Challenges and Concerns
Despite the potential advantages, converting government buildings into hotels could involve several challenges.
The first issue is cost. Older buildings may require extensive renovation to meet modern hotel standards, including plumbing, electrical systems, fire safety, elevators, air conditioning and accessibility requirements.
The second issue is heritage preservation. Historic structures cannot always be modified freely. Renovations would need to respect architectural and cultural value.
Security is another consideration, particularly if properties are located near sensitive government facilities.
There may also be questions about transparency and the valuation of public assets. Any leasing or public-private partnership arrangement should be conducted through clear procedures to ensure that government property is not undervalued.
Need for Proper Feasibility Studies
Before converting any government property, authorities need to determine whether the project is commercially and technically viable.
A feasibility study should examine construction costs, expected occupancy, location, tourism demand, operating expenses and potential revenue.
The government should also assess whether the building has greater value for another public purpose.
Not every unused building should automatically become a hotel. Some properties may be better suited for schools, hospitals, offices, cultural centres or other public facilities.
A careful selection process would therefore be essential.
Potential Impact on Islamabad
If implemented effectively, the hotel-development programme could help transform Islamabad’s hospitality industry.
The capital could attract more international conferences, business events and tourists while creating additional accommodation options.
Modern hotels could also encourage private investment in restaurants, retail, transportation and entertainment.
The development of a stronger hospitality industry would contribute to Islamabad’s image as an international diplomatic and business centre.
The CDA has also approved a feasibility study related to the development of five-star hotels, with consultants expected to explore joint-venture and profit-sharing models.
This suggests that hotel development is being considered as part of a wider strategy for strengthening the capital’s infrastructure.
A Broader Policy of Better Asset Utilization
The proposal to turn inactive government buildings into hotels fits into a wider question facing governments around the world: how should public assets that are no longer needed for their original purposes be used?
Unused buildings can represent locked-up capital. Repurposing them can potentially create economic value while avoiding the need to acquire entirely new land.
For Pakistan, where fiscal constraints remain significant, making better use of existing public assets could be an important part of economic management.
At the same time, public assets must be protected through transparent procedures and long-term planning.
Conclusion
The proposal to convert suitable government buildings into hotels represents an opportunity to combine tourism development, public-asset management and private investment.
In Islamabad, the government has already explored plans for modern hotels and the revival of inactive government buildings, with public-private partnerships being considered as a possible model.
If carefully implemented, the initiative could create jobs, increase tourism, support international conferences, preserve valuable buildings and generate revenue from underutilized public assets.
However, successful implementation will depend on detailed feasibility studies, transparent investment arrangements, heritage protection and careful selection of properties.
The objective should not simply be to turn government buildings into hotels, but to ensure that every converted property becomes a productive, financially sustainable and professionally managed asset.
With Pakistan seeking new ways to promote tourism and attract investment, the transformation of suitable inactive government buildings into hotels could become an important part of the country’s broader economic and tourism strategy.
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