ECC approves provision of funds for Roosevelt Hotel

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet approved the provision of funds to meet the emergent liabilities of Roosevelt Hotel Corporation, which is a property of the national flag carrier, Pakistan International Airlines.

Presided over by Federal Minister for Finance and Revenue Shaukat Tarin, the Aviation Division presented a summary to the committee, requesting provision of funds to meet the emergent liabilities of the Roosevelt Hotel Corporation (RHC), including the payment of local taxes and utilities.

The PIA-IL requested the ECC to utilise $10 million available with the National Bank of Pakistan to clear the immediate financial liabilities.

After due deliberation, the committee approved the summary with the directive to exercise due diligence in meeting the emergent liabilities and submit the utilisation report before the forum, regarding funding support by the government duly verified by the external auditors of the entity.

The committee also directed to engage a world-class consultant to meet the financial and operational challenges faced by the Roosevelt Hotel Corporation (RHC).

Two months ago, the ECC approved $17.3 million for the payment of liabilities of the Roosevelt Hotel, which is located in Manhattan – the most expensive area of New York City, US.

The PIA owned Roosevelt Hotel and Scribe Hotel in Paris, facing a severe financial crisis after the outbreak of Covid-19 pandemic last year.

The ECC approved a technical supplementary grant (TSG) in favour of the Election Commission of Pakistan, amounting to Rs215 million, for holding local government elections in the Cantonment Boards; thereby, enabling the Election Commission of Pakistan to perform its constitutional obligations.

The ECC also accorded approval for a Technical Supplementary Grant, amounting to Rs50,100 million for extending the rupee cover against financing by the Asian Development Bank (ADB) of $300 million for the procurement of Covid-19 vaccine and ancillary goods and services.

Federal Minister for Privatisation Mohammedmian Soomro, Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Maritime Affairs Syed Ali Zaidi, Adviser to the Prime Minister on Commerce Abdul Razak Dawood, federal secretaries, Federal Board of Revenue (FBR) chairman, Securities and Exchange Commission of Pakistan (SECP) chairman and other senior officials participated in the meeting.

State Bank of Pakistan (SBP) Governor Dr Reza Baqir joined the meeting through a video-link.