ISLAMABAD: Pakistan on Wednesday decided to pay the entire debt on the Roosevelt Hotel, owned by Pakistan International Airlines (PIA) in New York City, ARY NEWS reported.
According to details, the decision was made on the recommendation of the Aviation Minister Ghulam Sarwar Khan, who also persuaded the PIA CEO Arshad Malik for the move.
The government would pay off entire debt of United States Dollar (USD) 125 million on the hotel, paving the way to avoid taking further loans and interest payments against it.
It is pertinent to mention here that the Roosevelt Hotel was suffering from a financial crisis due to coronavirus pandemic in New York, which witnessed the closure of 93 hotels due to the pandemic recently.
The government needed more money to run affairs at the Roosevelt Hotel and it was later suggested from the aviation minister that the country should pay-off the entire debt on its own rather than seeking further loans and paying interests against it.
Meanwhile, the government has also decided to hire the services of a financial consultant to run affairs at the New York hotel on a joint venture.
On August 01, the Privatisation Commission announced that the services for the consortium of financial advisers will be acquired at earliest.
Read More: Govt shelves plan of Roosevelt Hotel privatization: sources
The Privatisation Commission, Pakistan International Airlines (PIA) and Aviation Division have started working on finalising terms of references (ToR).
A declaration from the commission stated that a suggestion was tabled for the joint usage of the PIA’s Roosevelt Hotel on the basis on a lease, whereas, the financial adviser will forward its recommendations for its transaction structure.
It added that the recommended transaction structure will be forwarded to the privatisation board and cabinet committee for getting its approval, whereas, the final approval will be given by the federal government.
Salahuddin serves as ARY News' aviation correspondent
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