The government on Friday approved to roll over $142 million debt of Roosevelt Hotel in New York, and cut interest rates on loans under Prime Minister Imran Khan’s housing project after commercial banks termed existing rates unaffordable for the people, reports Tribune.
Headed by Federal Minister for Finance Shaukat Tarin, the Economic Coordination Committee (ECC) of the Cabinet also approved Rs2.4 billion annual subsidy for foreign exchange companies to lure them to deposit their cash dollars with the commercial banks. Under the arrangement, the government will pay Rs1 over and above the exchange rate to the dealers for depositing the dollars.
The step aims to offset pressure on the rupee value.
During the meeting, the Aviation Division submitted a summary on the financial challenges of Roosevelt Hotel and a request of PIA Investment Limited for re-rolling of the principal amount along with mark-up payments by the National Bank of Pakistan (NBP) for a further period of two years ending on December 31, 2024.
The ECC approved to roll over $142 million debt of Roosevelt Hotel, owned by Pakistan International Airlines, for two years.
