The cabinet's Economic Coordination Committee has approved $ 142 million to meet the financial challenges at PIA's Roosevelt Hotel in New York.
At its meeting in Islamabad today (Wednesday), the ECC approved the Chairman of the Prime Minister's Financial Adviser, Dr. Abdul Hafeez Shaikh.
ECC also approved the streamlining of K-Electric Limited's eleven quarterly adjustments from July 2016 to March last year.
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The Cabinet Committee on Privatization (CCOP) refused to sell PIA's own Roosevelt Hotel in New York or completed renovations with investments of several million dollars. He has decided to hire a financial advisor to help run a joint venture.
The committee ordered a financial advisor to be hired to investigate potential joint venture opportunities for the development of the hotel, as recommended by M / S Deloitte in July last year.
An official statement from the Treasury after the meeting said: “The CCP also instructed the PC (Privatization Commission) to hire an FA adviser to start the transaction process in light of Ms. Deloitte's advice in July 2019. “That the highest and best use of Roosevelt Hotel Property is to convert the site into a mixed use (via joint venture) of mainly office towers for retail and owner-occupied apartments. "
A top official said there were conservative estimates it would cost at least $ 1 billion. Dollars to transform the hotel into a modern multifunctional building.
In the case of a modern site development, the investment could amount to more than $ 1 billion. Given the lowest business environment in which the hotel industry had suffered a severe blow following the COVID-19 scenario, CCOP decided to start the process of developing a joint venture as it would take a year and a half for this transaction if all was expected. deadlines have been met.
After receipt of the minutes of the CCOP meeting, the summary will be sent to the federal cabinet for approval next week. The Privatization Commission will then announce the appointment of the financial advisor. The privatization commission will also investigate all legal issues before proceeding, ”official sources told The News Thursday.
According to official sources, the government had left the aeronautical task force created by creating more confusion, as the name should have been the Transactions Committee rather than the task force, which was a step in the right direction.
Official sources said the Roosevelt Hotel was not sold out to anyone, so the impression should be removed immediately. There were three options: first, to sell the hotel; second, to make your own investments; thirdly, to find a suitable partner and implement such an agreement aimed at achieving a win-win situation for both the Government of Pakistan and the potential investor.
"We need to respond to different institutions so that the Roosevelt Hotel case has all the necessary procedures under the privatization law and prescribed rules and regulations," the official said.
The official announcement said that the Prime Minister's adviser on finance and revenue, Dr. Hafeez Shaikh chaired the meeting of the cabinet privatization committee in the cabinet department. The CCP revised its agenda with a point to privatize the assets of the Roosevelt Hotel (Manhattan, New York), owned by PIA-Investment Limited.
At the request of the Aviation Department, the CCP decided to cancel the Roosevelt Task Force, previously established under the chairmanship of the Minister of Privatization, to determine the mandate to lease the Roosevelt site for the creation of a joint venture project.
It was also advised that Ms. Deloitte update her investigation of the hotel transaction in the next 4 weeks and share it with the CCoP.
