ECC approves $142m support to bail out Roosevelt Hotel
The government’s Economic Coordination Committee (ECC) has approved a loan of US$ 142 million to bail out Roosevelt Hotel Corporation (RHC).
The Federal Minister for Finance and Revenue, Mr. Miftah Ismail, presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet at the Finance Division today.
Ministry of Aviation submitted a summary regarding the issuance of the GoP guarantee in favour of the National Bank of Pakistan. 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.
The government had constituted c committee headed by the Deputy Chairman Planning Commission to look into the financial challenges of RHC.
ECC on 2 Sept 2020 approved GoP support of US$ 142 million on the recommendation of the committee. Finance Division arranged a financing facility as a loan from the National Bank of Pakistan.
PIA to generate $30m for Roosevelt Hotel New York
The ECC after discussion approved GoP guarantee for a financing facility of US$ 142 million as a loan in accordance with the facility agreement between Roosevelt Hotel Corporation (RHC) and the National Bank of Pakistan (NBP).
Ministry of Industry and Production tabled a summary for revision of the price of imported Urea. It was informed that the price of imported Urea stored in NFML warehouses is lower than locally manufactured Urea.
In order to remove disparity in the prices of imported and locally manufactured Urea, the ECC approved the proposal that the Dealer Transfer price (DTP) of 50 kg imported Urea may be revised upward at Rs. 1805/bag by NFML (exclusive of dealer margin of Rs. 145/bag) for the stocks sold between June 23 to July 25, 2022.
Further DTP of remaining stocks held with NFML may further be revised upward to Rs. 2150/bag (exclusive of dealer margin of Rs. 50/bag) with effect from July 26, 2022, onwards. The ECC further directed to fix the Urea pricing and dealer margin in future with prior approval of the ECC.
