PIAIL Board Fails to Use €20M Scribe Hotel Funds
Islamabad: Pakistan International Airline Investment Limited (PIAIL) board has failed to utilize 20 million Euro available at Scribe Hotel due to tax implications.
In a recent meeting, economic coordination committee (ECC) was informed that that the PIAIL Board had regretted its inability to use funds available at Scribe Hotel to the tune of Euro 20 million as of 31 August 2025 due to tax and non-tax implications.
It was further informed that PIAIL Board had also approved the hiring of a Financial Advisor to evaluate the funds transfer process that would entail tax and non-tax liabilities.
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With regard to the funds received on account of the Award from the UAE Court in lieu of sale of Centre Hotel, Abu Dhabi, it was also informed that these funds were utilised to run the Roosevelt Hotel from 1 July 2025 onwards as well as to clear Union liabilities and other pressing expenditures.
It was further informed that that out of the amount of US$10.744 million (net of legal fees) received on account of Centre Hotel, only US$3.846 million were now available.
In respect of the Roosevelt Hotel, furthermore, Finance Division asked the Ministry of Defence to share the Financial Report of PIAIL, and cash inflow from the potential management contract with High Gate Capital.
It was stated that although the Defence Division provided the requisite information, the Finance Division reiterated its earlier stance.
Pakistan International Airline Investment Limited (PIAIL) had informed to country’s economic managers that during the Migrant Business Arrangement with New York City, Roosevelt Hotel had earned US$166 million from May to June 2025, and taking into account US$169 million to clear the outstanding liabilities, carrying cost and operating expenses, there was a shortfall of US$3.54 million, which would be met by utilising the US$3.5 million available with PIAIL.
