KARACHI: The government on Tuesday allowed the Pakistan International Airlines Investment Limited (PIA-IL) to utilize $10 million and clear the financial liabilities of the Roosevelt Hotel Corporation in New York.
The Economic Coordination Committee (ECC) approved a summery presented by the Aviation Division, requesting for the provision of funds to meet the hotel’s liabilities that include payments of local taxes and utilities.
The hotel was inaugurated in Manhattan on September 22, 1924. Named after the 26th President of the United States, Theodore Roosevelt, Pakistan’s national air carrier leased it in 1979 through PIA Investments Limited.
Saudi Prince Faisal bin Khalid bin Abdulaziz Al Saud was also one of the investors in the 1979 investment deal, though the airline decided to buy the hotel for $36.5 million in 1999 and later struck a deal with its Saudi partner in 2005 to buy his share in the property as well.
“The PIA-IL requested the ECC to utilize $10 million available with the National Bank of Pakistan to clear the immediate financial liabilities [of the Roosevelt Hotel],” the finance ministry said in statement issued after the ECC meeting in Islamabad.
“After due deliberation, the ECC approved the summary with a direction to exercise due diligence in meeting emergent liabilities and submit the utilization report before the forum regarding the funding support by the government,” the statement added.
The committee also directed the PIA-IL to engage a world class consultant to meet the financial and operational challenges faced by the hotel in New York.
The Roosevelt Hotel permanently closed its door on October 31, 2020, after remaining operational since 1924.
The ECC also approved $142 million for the PIA-IL last year to meet the hotel’s financial challenges.
It allowed to release $17.3 million in June for the payment of recurring as well as one-off liabilities accumulated by the hotel before approving $10 million more on Tuesday.
