ECC Approves PIA Roosevelt Hotel Debt Settlement


ISLAMABAD: The Government’s Economic Coordination Committee (ECC) on Wednesday approved the settlement of $ 105 million for a loan to the Roosevelt Hotel, owned by Pakistan International Airlines (PIA) in the United States

The ECC has approved payment of all obligations and liabilities arising from debt guaranteed by the Roosevelt Hotel owned by PIA in Manhattan, New York.

Prime Minister’s Finance and Income Advisor Hafeez Shaikh requested the Finance Division to engage with the Law and Aviation Divisions and the Planning Commission to formalize the method of payment / refinancing according to the schedule of the loan taken by the Roosevelt Hotel to meet its financial challenges, and submit to the ECC at its next meeting for formal approval.

US President Donald Trump had expressed interest in purchasing the historic luxury hotel.

The ECC also discussed and approved changes to the 2016 Import Policy Decree to streamline international trade in live animals and their meat products in accordance with international rules and practices.

The ECC also approved a proposal from the finance division to allow the Asian Development Bank to launch offshore bonds linked to the Pakistani rupee based on market conditions.

The committee also considered a proposal from the revenue division for a 40 billion rupee arrangement for the payment of income tax refunds up to 50 million rupees pending since 2013.

The ECC approved the proposal and asked the finance division to organize the necessary funds.

The Federal Board of Revenue was asked to inform the ECC of the current state of pending refunds, noting that paying refunds to taxpayers was the top priority of the government and taxpayers had already received 250 billion rupees. tax refund during the last fiscal year. or more than double the amount of refunds paid to taxpayers the previous year.

The ECC also considered approved a key terms revision of the Kamyab Jawan Youth Entrepreneurship Program to make the program accessible to all Pakistani citizens who meet the established criteria.

The ECC also approved a proposal from the Ministry of Interprovincial Coordination for the granting of an exemption from the payment of annual renewal fees for licenses issued to businesses related to travel and tourism. The financial impact of the one-year fee exemption amounts to approximately Rs17 million.

The committee also supported the rescheduling / restructuring of the financing facilities and the one-year deferral of loan principal repayment upon written request from borrowers received by June 30 to mitigate the effects of COVID-19, and extended the same ease. to borrowers the Kamyab Jawan Start-up Loan and Youth Entrepreneurship Program upon written request received by September 30, provided borrowers continue to pay the amount of the mark-up in accordance with the agreed terms and conditions of the relevant program .

The ECC also considered and approved a proposal from the cabinet division for reallocation through an additional technical grant of lapsed funds of Rs 8.01 billion as part of the Development Goals Achievement Program. sustainable to the respective departments and divisions.

The committee also approved a proposal for additional funds equivalent to $ 3 million for a contribution to the COVID-19 emergency fund of the South Asian Association for Regional Cooperation (Saarc) announced during the video conference of the leaders of the Saarc. in March 2020. Similar contributions from other member countries were also announced.

The ECC also discussed and approved an additional grant of 540 billion rupees that went unused due to procedural conditions under COVID-19 relief measures announced during the current fiscal year 2020. / 21.

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