ISLAMABAD: The Pakistani government on Thursday approved $8 million to pay severance packages of the Pakistan International Airlines-owned Roosevelt Hotel in New York, Pakistani state media reported, amid the South Asian country’s push for privatization of state entities.
The development came at an ECC meeting presided over by Finance Minister Muhammad Aurangzeb, during which the Ministry of Aviation presented a summary to allow the utilization of $8 million available with National Bank of Pakistan to pay severance packages of the establishment.
Roosevelt Hotel, a 19-story building located at a prime location in New York, was inaugurated in Manhattan on September 22, 1924. Named after the 26th President of the United States, Theodore Roosevelt, Pakistan’s national airline leased it in 1979 through the Pakistan International Airlines Investments Limited (PIA-IL). 
Saudi Prince Faisal bin Khalid bin Abdulaziz Al-Saud was also one of the investors in the 1979 investment deal, though the PIA 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 Economic Coordination Committee (ECC) of the Cabinet on Thursday approved $8 million to pay severance packages and operational expenses of the Roosevelt Hotel,” the state-run APP news agency reported.
In 2021, the government of then prime minister Imran Khan had allowed the release of $27.3 million for the payment of liabilities accumulated by the hotel, which permanently closed its door on October 31, 2020, after remaining operational since 1924.
A year earlier, it had also approved $142 million for the PIA-IL last year to meet the hotel’s financial challenges.
The $8 million severance grant comes amid Pakistan’s push for privatization and reforms in state-owned enterprises (SOEs) as it negotiates with the International Monetary Fund (IMF) a fresh bailout program, for which Islamabad must implement an ambitious reforms agenda, including the privatization of debt-ridden SOEs.
Among the main entities Pakistan is pushing to privatize is its national flag carrier, the Pakistan International Airlines (PIA), while the government is putting on the block a stake ranging from 51 percent to 100 percent.
The South Asian country, which has been facing low foreign exchange reserves, currency devaluation and high inflation, last month completed a short-term $3 billion IMF program that helped stave off a sovereign default, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term program to keep the $350 billion economy afloat.

KARACHI: Pakistan and China are holding a virtual meeting of the 13th Joint Cooperation Committee (JCC) on the China-Pakistan Economic Corridor (CPEC) today, Friday, with the security of Chinese organizations and personnel working in the South Asian nation expected to be at the top of the agenda.
China is a major ally and investor in Pakistan but both separatist and other militants have attacked Chinese projects in recent months, killing Chinese personnel, including five Chinese workers who perished in a suicide attack on Mar. 26 while on their way to the Dasu hydropower project in Pakistan’s northwest.
The hydropower project falls under the ambit of CPEC, a flagship project of China’s Belt and Road Initiative through which it has pledged more than $65 billion for road, rail and other infrastructure developments in the South Asian nation of 241 million people. Pakistan has said more than 50 projects worth $25 billion under the CPEC umbrella have been completed since the project was launched in 2015.
On Friday, the 13th JCC meeting formally began with a minute of silence in honor of the Chinese nationals killed in the March suicide bombing, with Pakistan’s planning ministry describing them as “heroes of Pakistan” whose contributions had supported the realization of CPEC.
“China and Pakistan have embarked on a journey of shared dreams working hand in hand to build high-quality development projects,” Pakistani Planning Minister Ahsan Iqbal said in his opening remarks at the meeting. “It is heartening to note the steady progress CPEC has made since its inception in 2013.”
He lauded President Xi Jinping’s vision to forge an “upgraded version” of CPEC and turn it into a growth, livelihood-enhancing, innovation, green and regional connectivity corridor to align it with Pakistan’s 5E socio-economic framework approved last year for the promotion of exports, energy, environment, equity and empowerment.
“We are ready to work with NDRC [National Development and Reform Commission of China] to finalize the scope and implementation plan on these corridors,” Iqbal added.
The minister detailed a number of projects completed so far under CPEC, including the construction of around 888 kilometers of motorways and highways. He said an 884-megawatt hydropower project at Sukhi Kinari, worth $1.7 billion, was under construction and expected to be commissioner later this year. 
Three hydel power projects and one coal-based Gwadar power project with a generation capacity of 2,100 megawatts were in advanced stages of completion, Iqbal added. 
Beijing has also over the years readily provided financial assistance to bail out its often-struggling neighbor, including in July last year when China granted Pakistan a two-year rollover on a $2.4 billion loan, giving the debt-saddled nation much-needed breathing space as it tackled a balance-of-payments crisis.
But Chinese projects and interests have also increasingly come under attack in recent years. 
The Dasu assault in March was the third major one in a little over a week on China’s interests and followed a Mar. 20 attack on a strategic port used by China in the southwestern province of Balochistan, where Beijing has poured billions of dollars into infrastructure projects including a deep-sea port, and a Mar. 25 assault on a naval air base, also in the southwest.
Both attacks were claimed by the Baloch Liberation Army (BLA), the most prominent of several separatist groups in Balochistan.
Dasu, the site of a major dam, has been attacked in the past, with a bus blast in 2021 killing 13 people, nine Chinese among them, although no group claimed responsibility, like the Mar. 26 bombing.
Pakistan is home to twin insurgencies, one mounted by religiously-motivated militants and the other by ethnic separatists who seek secession, blaming the government’s inequitable division of natural resources in southwestern Balochistan province.
Chinese interests are mostly under attack primarily by ethnic militants seeking to push Beijing out of mineral-rich Balochistan, but that area is far from the site of the Mar. 26 bombing.
On Thursday, Pakistan’s top economic body approved $2.5 million in compensation for families of Chinese workers who were killed in the Mar. 26 Dasu attack.