ECC approves $8mn for Roosevelt Hotel.
The Economic Coordination Committee (ECC) of the Cabinet, under the leadership of Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, has sanctioned a series of significant financial allocations, including $8 million for the Roosevelt Hotel’s severance packages and operational expenses.
In a meeting held with key government officials, the ECC approved the summary presented by the Ministry of Aviation, allowing the utilization of $8 million from the National Bank of Pakistan for the Roosevelt Hotel.
This decision highlights the government’s commitment to addressing the financial challenges faced by the iconic property.
Additionally, the ECC endorsed a request from the Industries and Production Division for the release of Rs. 2,159.53 million to cover gas bills for Pakistan Steel Mill (PSM), providing much-needed financial relief to the state-owned enterprise.
Other Major Approvals
IT Export Facilitation: The Finance Division’s proposal to amend policies for equity investment abroad aimed at bolstering IT exports was also approved, reflecting the ECC’s support for the technology sector’s growth.
Earthquake Reconstruction: The committee allocated Rs. 1,027.378 million to the Earthquake Reconstruction and Rehabilitation Authority to clear matured liabilities of contractors, ensuring continued progress in rebuilding efforts.
Support for Families: Rs. 6.2 million was approved for the Ministry of Interior to provide financial support to the family of a deceased individual, demonstrating the ECC’s commitment to social welfare.
ICT Administration Project: An additional Rs. 54.490 million was redirected to the Ministry of Interior from the Ministry of National Food Security and Research for an ICT Administration project in Islamabad.
Immunization Program: The Federal Directorate of Immunization (FDI) under the Ministry of National Health Services, Regulations, and Coordination received a substantial allocation of Rs. 12,036.103 million to enhance national immunization efforts.
Development and Compensation Packages
Power Division: The ECC allocated Rs. 2,217 million for development expenditures within the current fiscal year, supporting critical infrastructure projects.
Nuclear Safety: Rs. 184.509 million was granted to the Pakistan Nuclear Regulatory Authority to ensure continued regulatory oversight and safety.
Hydropower Project Compensation: In a move to address the aftermath of the DASU Hydropower Project incident, $2.58 million and Rs. 2.5 million were approved for the Ministry of Water Resources to compensate Chinese and local casualties.
Hydropower Financing: A significant allocation of Rs. 70,484 million was sanctioned as rupee cover for various hydropower projects, highlighting the ECC’s focus on sustainable energy development.
Attendees
As ECC approves $8mn for Roosevelt Hotel, the meeting was attended by several high-ranking officials, including the Minister for Power Sardar Awais Ahmad Khan Leghari, Minister for Industries and Production Rana Tanveer Hussain, Minister for Economic Affairs Ahad Khan Cheema, Minister of State for Finance and Revenue Ali Pervez Malik, Governor State Bank of Pakistan (SBP), Chairman Security Exchange Commission of Pakistan (SECP), Federal Secretaries, and other senior officials from relevant ministries.
Roosevelt Hotel has been added to privatization list, Govt of Pakistan has no business in owning hotels ✅✅
Last year, Roosevelt Hotel’s 1025 rooms were rented out at $200/night for next 3 years.
PIA will receive approx $220Mn revenue & $20Mn net earnings from this three year… pic.twitter.com/9y5YLyPblF
— Abdul Rehman Najam (@AbdulRehman0292) May 16, 2024
