PTI government takes important decision over PIA's Roosevelt Hotel in New York
ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government takes important decision over PIA's Roosevelt Hotel in New York.
PTI government has approved to give on long-term lease Pakistan International Airline’s Roosevelt Hotel in New York. In a meeting of the National Assembly’s Standing Committee on Privatisation held on Wednesday, it was informed that the federal government, on the recommendation of the privatisation committee, has decided to lease the said hotel.
The committee was surprised to know that the cabinet had made this decision “on a one-line paragraph summary” forwarded by the privatisation committee.
It was also surprised to know that the PIA Investments Limited (PIAIL), which owns the hotel in New York, was registered in British Virgin Island.
Interestingly, during the meeting, a consultant hired for privatisation informed the committee that the federal cabinet had already approved a summary regarding the “privatisation” of Roosevelt Hotel.
However, Privatisation Minister Muhammadmian Soomro clarified said that the hotel was being given on long-term lease and was not being privatised. “The amount that would be received as a result this step would be spent on the revamping of PIA.”
He also claimed that unlike the impression, the hotel was not making profits for the past few years.
“Selling the hotel in New York will cost a lot in taxes, therefore, the ministry is considering a proposal to operate the hotel through a joint venture or leasing it out on a long-term basis.”
He continued, “We are not selling the Roosevelt Hotel. Its location is very important, but its income is declining. Leasing out the property is the best option for Pakistan,” the minister said.