Tuesday, April 16, 2024

Pakistan is able to invest $36 million more on bailing out its prime asset in New York, the Roosevelt Hotel.

Pakistan considered a second bailout package on Thursday to save the New York Roosevelt Hotel, owned by Pakistan International Airlines (PIA).

The Economic Coordination Committee (ECC) of Pakistan proposed setting up a committee to approve the hotel’s second $36 million bailout package.

Four months ago, the committee had approved $142 million to clear the immediate financial requirements of the hotel, and another $13 million as annual carrying charge until a lease agreement with a venture partner is finalised.

In 2019, Pakistan risked losing valuable land properties abroad, namely the Roosevelt Hotel and therefore the Scribe Hotel (also owned by the PIA) in Paris, after a court within the British Virgin Islands enforced a world arbitration decision involving a disputed mining license. The case involved two multinational mining firms — Barrick Gold and Antofagasta.

Barrick Gold and Antofagasta requested ownership of the hotels as compensation for the cancellation of a copper and gold mining licence, according to a TRT article earlier this month. The companies claimed that they were wrongly prevented from extracting minerals, while Pakistan argued that irregularities were present in the project.

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