ECC approves $10mln for PIAIL to pay liabilities

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Tuesday allowed PIA Investment Limited to utilise $10 million to meet its immediate financial obligations.

Shaukat Tarin, minister for Finance and Revenue chaired the ECC meeting.

A statement said aviation division presented a summary requesting for provision of funds to meet emergent liabilities of the Roosevelt Hotel Corporation (RHC) including payment of local taxes and utilities. PIA-IL requested the ECC to utilize $10 million available with the National Bank of Pakistan to clear the immediate financial liabilities. "After due deliberation, the ECC approved the summary with a direction to exercise due diligence in meeting emergent liabilities and submit utilization report, before the forum, regarding funding support by the government duly verified by the external auditors of the entity," the statement said.

"The Committee also directed to engage a world class consultant to meet the financial and operational challenges faced by RHC."

The Roosevelt Hotel in New York's Manhattan is owned by Pakistan International Airlines.

In September 2020, the The ECC approved $142 million to cater to the immediate financial needs of the hotel. The amount was arranged as a loan from the National Bank of Pakistan with a per annum mark-up of $5.9 million.

Additionally, it also approved $13 million as an annual carrying cost until a lease agreement is finalised with a joint venture partner. Meanwhile the ECC also approved a a technical supplementary grant in favour of Election Commission of Pakistan, amounting to Rs215 million, for holding local government elections in cantonment boards.

The ECC also accorded approval for a technical supplementary grant amounting to Rs50.1 billion for extending rupee cover against financing by the Asian Development Bank (ADB) of $300 million for procurement of Covid-19 vaccine and ancillary goods and services. Minister for Privatization Muhammad Mian Soomro, Minister for National Food Security & Research Syed Fakhar Imam, Minister for Maritime Affairs Syed Ali Zaidi, Adviser to the PM on Commerce Abdul Razak Dawood, Federal Secretaries, Chairman FBR, Chairman SECP and other senior officers participated in the meeting. Governor State Bank of Pakistan Reza Baqir joined the meeting through a video link.