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Suggestion tabled for joint usage of PIA’s Roosevelt Hotel

Suggestion tabled for joint usage of PIA’s Roosevelt Hotel

ISLAMABAD: The Privatisation Commission has announced that the services for the consortium of financial advisers will be acquired at earliest.

The Privatisation Commission, Pakistan International Airlines (PIA) and Aviation Division have started working on finalising terms of references (ToR).

A declaration from the commission stated that a suggestion was tabled for the joint usage of the PIA’s Roosevelt Hotel on the basis on a lease, whereas, the financial adviser will forward its recommendations for its transaction structure.

It added that the recommended transaction structure will be forwarded to the privatisation board and cabinet committee for getting its approval, whereas, the final approval will be given by the federal government.

The commission will seek applications from local and international investors in accordance with the regulations.

On July 5, it emerged that the federal government had decided to shelve a plan of privatisation of the Roosevelt Hotel.

The government had decided to keep the legally questionable decision of privatization of Roosevelt Hotel New York on the back burner after it was advised by the legal adviser to stay away from the controversial plan, sources said.

Roosevelt Hotel, located in the heart of global commercial hub, is owned by the Pakistan International Airlines (PIA).

A senior legal adviser of the government in opinion had opposed the plan of joint venture and lease of the precious real estate. “The Supreme Court will likely to take notice of the decision,” the legal adviser said.

“The case of appointment of the PIA CEO was already being heard in the court of the chief justice. The government could face further embarrassment in the court over the Roosevelt Hotel issue,” according to the opinion of the legal adviser.

It is to be mentioned here that government had already dissolved a body few days ago, which was established earlier for the privatisation of the Roosevelt Hotel.

It is to be mentioned here that successive government, had tried to sell or give the hotel on lease but failed to implement the decision