The Cabinet Committee for Privatization has decided that the PIA owned Roosevelt Hotel in New York City will not be privatized. The committee has also denotified the hotel task force formed for the sale.
The committee also agreed to appoint a finance advisor to assist government in this manner.
The summary for privatization was earlier prepared by Aviation Division. The meeting was attended by minster of communication, law and order and advisors on commerce and investments.
Earlier in 2007 after the renovations worth around 65 million dollars, PIA had announced that it was putting up the property for sale but due to the huge loss incurred to company and amid the rising profitability of the property the idea of selling the hotel was put on hold.
Privatization ministry/Commission Secretary Rizwan Malik had said earlier that the property will not be sold instead privatized in order to include potential investors. The main objective was to generate money that could be utilized to improve the conditions at PIA.
Pakistan People’s party PPP had already opposed the idea of the sale calling it ‘ill-timed’. PPP’s parliamentary leader in the Senate Sherry Rehman has said in a statement, “Is this the time to sell Roosevelt Hotel, when due to the pandemic property prices have come down significantly and it will result in a loss to Pakistan as we will not get the right price.”
PIA with its subsidiary, PIA investments has taken the hotel on 20-year lease back in 1979.
