Daily Times

The Economic Coordination Committee (ECC) of the federal cabinet has allowed Pakistan International Airlines Investment Limited (PIAIL) to utilise $10 million available with the National Bank of Pakistan to meet emergent liabilities of the Roosevelt Hotel Corporation (RHC) including payment of local taxes and utilities.

Federal Minister for Finance and Revenue Shaukat Tarin presided over the ECC meeting on Tuesday.

The Aviation Division presented a summary requesting for provision of funds to meet emergent liabilities of the Roosevelt Hotel Corporation (RHC) including payment of local taxes and utilities. The PIAIL requested the ECC to utilise US$10 million available with the National Bank of Pakistan to clear the immediate financial liabilities.

After due deliberation, the ECC approved the summary with a direction to exercise due diligence in meeting emergent liabilities and submit utilisation report, before the forum, regarding funding support by the government of Pakistan, duly verified by the external auditors of the entity. The committee also directed to engage a world class consultant to meet the financial and operational challenges faced by RHC. The ECC approved a technical supplementary grant in favour of the Election Commission of Pakistan, amounting to Rs215 million, for holding local government elections in cantonment boards thereby, enabling the ECP to perform its constitutional obligations.

The ECC also accorded approval for a technical supplementary grant (TSG) amounting to Rs50,100 million for extending rupee cover against financing by the Asian Development Bank (ADB) of US$300 million for procurement of Covid-19 vaccine and ancillary goods and services. Minister for Privatisation Muhammad Mian Soomro, Minister for National Food Security and Research Syed Fakhar Imam, Minister for Maritime Affairs Syed Ali Zaidi, Adviser to the PM on Commerce Abdul Razak Dawood, federal secretaries, chairman Federal Board of Revenue, chairman Securities and Exchange Commission of Pakistan and other senior officers participated in the meeting. Governor State Bank of Pakistan Dr Reza Baqir joined the meeting through a video link. Earlier in June last, the ECC approved $17.3 million for PIAIL to pay recurring as well as one-off liabilities in respect of Roosevelt Hotel. Similarly, in September last year, the ECC had approved $142 million to address the financial challenges faced by the PIA-owned Roosevelt Hotel.