Minister of Railways and Aviation, Khawaja Saad Rafique, has announced that the New York Roosevelt Hotel has been leased by the Government of Pakistan for three years.
He was addressing a news conference in Lahore.
This lease agreement is expected to generate billions of rupees in revenue for the country.
The Pakistani Hotel Roosevelt in New York had incurred expenses of $25 million and owed $20 million to the hotel. The government has signed an agreement with the New York City Administration to lease the hotel for three years.
According to Rafique, a contract has been signed for 1,250 rooms over the course of three years, which will result in billions of dollars in revenue for Pakistan. After the three-year period and payment of dues, the hotel will be returned in the same condition. The government will not incur any further expenses and will be free from the risk of landmarking.
The minister expressed his gratitude, acknowledging the financial difficulties faced by the country and the risk of landmarking. He mentioned that the Roosevelt New York Pakistani Hotel previously employed 479 individuals, but after the deal, only 77 employees will remain.
In addition to the hotel lease, the minister discussed plans to outsource Lahore, Karachi, and Islamabad airports. The outsourcing will be implemented in phases, starting with Islamabad. He assured that civil aviation employees will not become unemployed due to this outsourcing.
Rafique acknowledged that Pakistan lacks experience in outsourcing but emphasised that the process will be conducted through the International Finance Corporation (IFC) to ensure transparency and success. The minister highlighted the need for modern airports in Pakistan, citing examples such as Madinah Munawara and Istanbul Airports. The IFC has approached 21 companies for outsourcing airport operations.
Regarding infrastructure development, Rafique mentioned that the Quetta Airport runway has been upgraded, while construction on the runways of Faisalabad and Lahore will commence on July 29 with an investment of seventeen billion rupees. He also mentioned plans to establish a new international modern airport in Sukkur and DI Khan, as well as direct flights from Quetta to Saudi Arabia for Hajj pilgrims.
Addressing the issue of leased planes, the minister explained that a leased plane bound for Malaysia was temporarily detained by the Malaysian court but has now returned with passengers as per the court's order. He acknowledged the challenges faced by Pakistan International Airlines (PIA) and emphasised the need to involve the private sector to improve the institution.
The minister stated that bringing in the private sector is crucial for the betterment of PIA, especially considering the issues related to food quality and seats.
Rafique also mentioned the ban on PIA flights to certain destinations, which results in an annual loss of Rs71 billion, with 92 percent of the losses attributed to PIA. He stated that efforts are being made to lift the ban, particularly in the United Kingdom, and if successful, Europe will be the next target.
Responding to questions from journalists, the minister emphasised that the government's role is to regulate, while business is the job of businessmen. He stressed the importance of bringing the private sector forward to drive development, particularly in the railway industry, where it is costly to build production units. The minister highlighted the need for the private sector's involvement in running the industry.
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