August 11, 2022 (MLN):The Economic Coordination Committee (ECC) of the Cabinet approved a financing facility of $142 million as a loan to rescue Roosevelt Hotel Corporation (RHC) from financial distress.
Federal Minister for Finance and Revenue Mr Miftah Ismail presided over the ECC meeting at Finance Division today.
Ministry of Aviation submitted a summary regarding the issuance of GoP guarantee in favour of the National Bank of Pakistan (NBP). It was informed that Roosevelt Hotel Corporation (RHC) is owned by Pakistan International Airlines-Investment Limited (PIA-IL).
The hotel business was slowing down in the USA and around the world due to the Covid-19 pandemic. RHC was shut down in December 2020 to avoid losses.
A committee headed by Deputy Chairman Planning Commission was constituted to look into the financial challenges of RHC.
ECC approved GoP support of $142mn on the recommendation of the committee. Finance Division arranged a financing facility as a loan from NBP.
The ECC after discussion approved GoP guarantee for financing the facility of $142mn as a loan in accordance with the facility agreement between Roosevelt Hotel Corporation (RHC) and the NBP.
Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Mr. Khurram Dastgir Khan, Mr. Shahid Khaqan Abbasi MNA/ex-PM, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Mr. Musadik Masood Malik, SAPM on Government Effectiveness Dr. Muhammad Jehanzeb Khan, Coordinator to the PM on economy Mr. Bilal Azhar Kayani , Coordinator to PM on Commerce & Industry Rana Ihsan Afzal, Federal Secretaries and senior officers attended the meeting.
