ECC okays settlement of Roosevelt Hotel’s loan

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday gave go-ahead in principle to the payment of all liabilities and responsibilities resulting from a debt of US$ 105 million secured by the Pakistan International Airlines Corporation Limited (PIACL) owned Roosevelt Hotel in Manhattan, New York.

The ECC meeting chaired by Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh also asked the Finance Division to engage with Law Division, Aviation Division and Planning Planning Commission to formalise the mode of payment/refinancing as per schedule of the loan contracted by the Roosevelt Hotel to meet its financial challenges, and submit to the ECC in its next meeting for formal approval.

The ECC also approved amendments to the Import Policy Order 2016 to streamline international trade in live animals and their meat products in accordance with the international rules and practices.

The committee also okayed a proposal by the Finance Division to allow the Asian Development Bank to launch Offshore Pakistan Rupee (PKR)-Linked bonds based on conducive market conditions. The ECC also approved a revision in key terms of Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme for making 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 grant of exemption from payment of annual renewal fee of licences issued to travel and tourism related business. The financial impact of the one-year fee exemption comes to around Rs 17 million.

The ECC approved a proposal for additional funds equal to US$ 3 million for contribution towards SAARC Covid-19 Emergency Fund announced during the video conference of SAARC leaders in March 2020. The ECC was told that similar contributions from other member countries had also been announced. The committee also considered a proposal by the Revenue Division for arrangement of Rs 40 billion for payment of Income Tax refunds of up to Rs 50 million pending since 2013. It approved the proposal and asked the Finance Division to arrange the required funds.