Decisions on Roosevelt Hotel to be taken in national interest

ECC had given go-ahead to payment of all liabilities, responsibilities resulting from debt of $105m secured by Pakistan International Airlines Corporation Limited

ISLAMABAD           -   The Economic Coordination Committee of the Cabinet (ECC) on Thursday has decided that matters related to the transaction of Roosevelt Hotel would be resolved in a manner that is only in favour of the country and not benefitting any individual or party.

Adviser to the Prime Minister on Finance and Revenue chaired the meeting of the Economic Coordination Committee of the Cabinet (ECC) here at the Cabinet Division. ECC was given an update on the issue of the Roosevelt Hotel, as directed by the Adviser Finance in an earlier meeting. The Adviser directed that the issue should be handled in fair and most transparent manner and in the best national interest. He directed that all stakeholders including Secretary Aviation should be included in every discussion/ negotiation related to the issues of the Roosevelt Hotel. Chairman ECC further directed that it should be made clear to all that in this transaction all matters shall be resolved in a manner that is only in favour of the country and not benefitting any individual or party. In its one of previous meetings, the ECC had given go-ahead to the payment of all liabilities and responsibilities resulting from a debt of $105 million secured by the Pakistan International Airlines Corporation Limited (PIACL) owned Roosevelt Hotel in Manhattan, New York. 

The government is appointing the Financial Adviser (FA) to undertake the envisaged leasing of Roosevelt Hotel site for setting up a joint venture project for prospective mixed use development. The Privatisation Commission would appoint the FA through the best suited mode of Privatisation as delineated in the PC Ordinance, 2000. According to the law/rules /regulations of PC as well as PPRA, the Privatisation Commission will hire the services of FA Consortium which will recommend the best suited Transaction Structure under the modes of privatisation provided in the PC Ordinance /Rules and in consultation with relevant stakeholders. The proposed transaction structure will be presented before the PC Board and Cabinet Committee on Privatisation (CCoP) for recommendations and for approval/Ratification by the Federal Cabinet. Meanwhile, the ECC has also approved the technical supplementary grant equivalent to Rs252.382 million for the discharge of liabilities related to M/s Karkey arbitration.

Procurement of 83 X Micron sprayers for anti-locust operation was allowed by ECC to National Disaster Management Authority with the grant of special exemption of taxes and duties of import. On a proposal pertaining to the taxation issues related to the telecom sector ECC decided that proposal may be submitted in the next ECC after thorough deliberation of its impact on already in vogue taxation policies, by FBR, Ministry of Commerce and Ministry of Industries.

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