Govt gears up for privitisation of PIA-owned Roosevelt Hotel

ISLAMABAD: The Cabinet Committee on Privatisation (CCOP) has discussed the privatisation of Roosevelt Hotel in Manhattan, New York, owned by Pakistan International Airlines (PIA).

The Cabinet Division issued a notification calling for a meeting the committee on a one-point agenda to discuss the sale of the asset. The summary for the privatisation of the Roosevelt Hotel has been prepared by the Aviation Division.

Adviser on Finance and Revenue Dr Hafeez Shaikh chaired the meeting at the prime minister’s office. The ministers for communications, law and justice, privatisation, power and advisers on commerce and investment, and institutional reforms were invited to attend the deliberations.

The Aviation Division is pushing the government for early disposal of Roosevelt Hotel and has raised the issue of early disposal before Prime Minister Imran Khan on several occasions.

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The move has attracted criticism as opponents argue the move with pave way for the eventual privitisation of the PIA. Senator Sherry Rehman of the PPP said the Roosevelt Hotel in on the “chopping block” and all “asset are stripped to cannibalise and sell” as the PTI has no coherent world view.

Former Foreign Secretary Jalil Abbas Jillani said this was not the right time to sell the Roosevelt Hotel and “would be seen as a desperate sale and Pakistan won’t get the right price”. He said the property is worth more than a billion dollars and property prices have come down significantly due to the pandemic.

This is no time to sell Roosevelt Hotel New York. This would be seen as a desperate sale and Pakistan won’t get the right price. The property is worth more than a billion dollars. Due to Pandemic property prices have come down significantly. https://t.co/lq0F2xj6vS

— Jalil Abbas Jilani (@JalilJilani) July 1, 2020

In a meeting chaired by the prime minister on PIA reformed held on June 8, the Aviation Division was directed to submit present a proposal for joint venture/long-term lease of Roosevelt Hotel before the CCOP within one week.

In a summary moved to CCOP, Aviation Division informed that it was also directed that a special meeting with one-point agenda should be convened to consider the proposal.

In another meeting on June 19, the prime minister directed Aviation Division to submit a proposal for revision of constitution of Taskforce for Privatization of Roosevelt Hotel as part of PIA’s financial restructuring plan.

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In November last year, the cabinet committee had constituted a task force to finalise terms of reference for leasing out the hotel. The task force was expected to oversee the transaction to ensure effective and efficient implementation of the committee’s decision in compliance with provisions of the Privatisation Ordinance 2000.

Subsequently, in December 2019, the Privatisation Commission board approved terms of references, which were to be sent to the cabinet committee for final approval.

In March this year, Aviation Minister Ghulam Sarwar Khan had informed the National Assembly Standing Committee on Privatisation that the government is planning to give out the Roosevelt Hotel on a long-term lease.