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.
Pakistan approves $8 million to pay severance packages of PIA-owned Roosevelt Hotel in New York
https://arab.news/jrec6
Pakistan approves $8 million to pay severance packages of PIA-owned Roosevelt Hotel in New York
- Pakistan’s national airline bought the Roosevelt Hotel in 1999 for $36.5 million
- Islamabad is pushing for privatization of state entities for a fresh IMF bailout
Islamabad rebuts claims of Pakistan being used as base for possible US strike on Iran
- Pakistan information ministry attributes the ‘reckless’ claims to ‘Afghanistan and Indian X accounts’
- ’Blame-pushing narrative tries to drag Pakistan into a US-Iran conflict without any evidence,’ it adds
ISLAMABAD: Pakistan on Monday refuted reports claiming that its territory could be used as a base for a possible US military strike on Iran, calling the claims a “reckless” attempt to drag Pakistani into a US-Iran conflict.
The Pakistan information ministry’s fact check account on X attributed the claims to “propaganda machineries Afghanistan and Indian X accounts,” identifying handles that claimed the US has moved aerial refueling (KC-135R) and surveillance aircraft to Pakistan.
The ministry said X accounts, @KHoorasanM_U1, @RealBababanaras and @AFGDefense, claimed these US aircraft are conducting unusual flights toward or into Iranian airspace and that Pakistan is being used as a base to support US stealth fighters (F-35/F-22) in a possible military strike on Iran.
Citing Reuters and Washington Post, the information ministry noted that while US refueling aircraft movements have been reported, but they were mostly linked to Europe, and there is no credible proof of any US aircraft based in Pakistan or any operational flights to Iran for a possible strike.
“This is a reckless, blame-pushing narrative that tries to drag Pakistan into a US-Iran conflict without any verifiable evidence,” the information ministry said on its fact check account on X, urging people not to share sensational military stories from “propaganda pages.”
“For national security and defense matters, rely only on ISPR (Inter-Services Public Relations), MoIB (Ministry of Information and Broadcasting), MoFA (Ministry of Foreign Affairs), and reputable defense outlets.”
The development comes amid weeks of public unrest in Iran over worsening economic conditions and a government crackdown on protesters.
The US-based Human Rights Activists News Agency said at least 572 people have been killed, including 503 protesters and 69 members of security forces. It said more than 10,600 people have been detained over the two weeks of protests.
The group relies on supporters in Iran cross-checking information, AP reported.
With the Internet down in Iran and phone lines cut off, gauging the demonstrations from abroad has grown more difficult. Iran’s government has not offered overall casualty figures.
US President Donald Trump last week threatened to intervene militarily if Tehran continued to kill protesters. He said late Sunday his administration was in talks to set up a meeting with Tehran but cautioned that he may have to act before then as reports of deaths mount and the government continues to arrest protesters.
“Iran called, they want to negotiate,” Trump told reporters on Air Force One.
Iran did not acknowledge Trump’s comments immediately. It has previously warned the US military and Israel would be “legitimate targets” if America uses force to protect demonstrators.
Separately, China said it opposes foreign “interference” in other countries.
“We always oppose interference in other countries’ internal affairs,” foreign ministry spokeswoman Mao Ning told a regular news conference on Monday, when asked about Trump’s comments. “We call on all parties to do more things conducive to peace and stability in the Middle East.”
