ECC okays timely settlement of Roosevelt Hotel’s debt
Aftab Ahmed
Islamabad: The Economic Coordination Committee (ECC) of the Cabinet in principle go-ahead to the payment of all liabilities and responsibilities of Roosevelt Hotel. All these resulted from a debt of US$ 105 million. Pakistan International Airlines Corporation Limited (PIACL) secured this debt. The PIACL also owned the Roosevelt Hotel in Manhattan, New York.
Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the meeting. The Advisor also asked the Finance Division to engage the Law Division, Aviation Division, and Planning Planning Commission.
It will formalize the mode of payment/refinancing. The payment should be as per the schedule of the Roosevelt Hotel’s loan to meet its financial challenges. Also, it will submit to ECC in its next meeting for formal approval.
The committee also took up and approved a proposal by the Cabinet Division for re-allocation through a technical supplementary grant of lapsed funds of Rs 8.01 billion under sustainable development goals achievement program (SAP) to respective Ministries and Divisions.
It also discussed and approved amendments to the Import Policy Order 2016 to streamline international trade in live animals and their meat products by the international rules and practices.
The ECC also approved a Finance Division proposal to allow the Asian Development Bank to launch Offshore Pakistan Rupee (PKR)-Linked bonds based on conducive market conditions.
The meeting also considered approved a revision in key terms of the prime minister’s Kamyab Jawan Youth Entrepreneurship Scheme to make the scheme accessible to all Pakistani citizens meeting the laid-down criteria.
The ECC also okayed a proposal by the Ministry of Inter-provincial Coordination for a grant of exemption from payment of annual renewal fee of licenses issued to travel and tourism-related business. The financial impact of the one-year fee exemption comes to approximately Rs 17 million.
The committee also took up the rescheduling/restructuring of financing facilities and deferment in re-payment of principal loan amount by one year upon a written request of the borrowers received before 30th June 2020 to mitigate the effects of COVID-19.
Under PMYBL and Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme, it extends the same facility to borrowers. The borrowers would write a written request before 30th September 2020 to continue to service the mark-up amount as per the agreed terms and conditions of the relevant scheme.
They also approved a proposal for additional funds equal to US$ 3 million for a contribution towards the SAARC Covid-19 Emergency Fund announced during the video conference of SAARC leaders in March 2020. It further said that similar contributions from other member countries were also announced.
The ECC also discussed and approved a supplementary grant of Rs 540 billion. It is unutilized due to procedural conditions under the Covid-19 relief measures announced in FY2020-21.
The meeting also considered a proposal of the Revenue Division to arrange Rs 40 billion. The payment of Income Tax refunds of up to Rs 50 million is also pending since 2013.
The ECC approved the proposal and asked the Finance Division to arrange the required funds. The Chair also asked FBR to appraise the ECC of the current status of pending refunds.
The committee also observed that payment of refunds to the taxpayers was the topmost priority of the government. Moreover, taxpayers have already given Rs. 250 billion tax refunds in the outgoing financial year. It is more than double the number of refunds paid to taxpayers in the previous year.
