Pakistan Faces $131m Liability if Roosevelt Hotel Stays Shut
The government risks incurring liabilities over US$131 million over three years if the Roosevelt Hotel in New York is not reopened.
The Ministry of Defense (MoD) in a recent meeting of economic coordination committee (ECC) informed that the PIAIL team had negotiated with High Gate for reopening of the Roosevelt Hotel while keeping the Privatisation Commission in the loop.
It said that the proposal was pending in the Privatisation Commission. PIA to generate $30m for Roosevelt Hotel New York
If the Roosevelt Hotel were closed, it would entail carrying costs/liabilities amounting to US$131 million for three years,” Defense ministry said adding that whereas, if the Roosevelt Hotel were reopened, it would have to bear a cost of US$61 million.
The MoD further informed that in the meanwhile, an emergent situation had developed whereby the Impartial Chairperson (IC)/Arbitrator on the Union’s grievance had held a hearing on 5 September 2025 and had issued an order on 15 September 2025 that the decision on reopening of the Roosevelt Hotel must be taken within seven days of the issue of the order until 22 September 2025.
In case of failure, the IC shall issue an Award based on the Union’s claims of severance (article 52 and 57 of the Industry Wide Agreement), back-pay of laid off employees and withdrawal liabilities.
It was further informed that PIAIL had written in consequence thereof requesting for an immediate decision on the matter, and that the PIAIL Board had already endorsed the proposal for reopening of the Roosevelt Hotel submitted to PC in June 2025. It was yet to be decided by the Privatisation Commission.
The Defense ministry has proposed the government to reopen Roosevelt Hotel for a period of three years or till the finalisation of privatisation process being undertaken by the Privatisation Commission.
Accordingly, the Ministry of Defence solicited approval of the ECC of the Cabinet to the proposal.
Apprising the ECC on the latest developments regarding the reopening of Roosevelt Hotel, the Advisor to the Prime Minister on Privatisation stated that the new Transaction Advisor to the PIAIL was expected to be nominated within the next two months and the JV Partners were expected to come in within the next six months, which would expedite the resolution of the issue.
