ISLAMABAD( The COW News Digital) The State Bank of Pakistan (SBP) has expressed serious reservations over delays in the repayment of loans obtained by the Roosevelt Hotel New York, a property owned by Pakistan International Airlines Investment Limited (PIAIL). The issue was raised during the latest meeting of the Economic Coordination Committee (ECC), which reviewed the hotel’s worsening financial situation.
According to official documents, the Roosevelt Hotel currently faces a severe financial crunch following the suspension of its income stream. The ECC was informed that the hotel requires $17.6 million in additional financial support to meet its immediate obligations. These include union dues, property taxes, insurance claims, interest payments to the National Bank of Pakistan (NBP), administrative and general expenses, and utility bills.
During the meeting, the Adviser to the Prime Minister on Privatization suggested that with proper planning, these payments could be made in phases. However, the ECC noted with concern that PIAIL had made no progress in converting NBP’s foreign loan into local currency, despite earlier directions.
The Ministry of Finance informed the committee that it had received financial statements from the Roosevelt Hotel and PIA Holding Company Limited, but details from PIAIL were still pending. Meanwhile, the Ministry of Defence also submitted financial demands that required clarification.
The ECC directed the concerned ministries to review the proposed financial plan within a week in consultation with the State Bank, NBP, Finance Ministry, and the Privatization Commission, and to minimize the requested financial assistance. The revised proposal must then be approved by the PIAIL Board before being resubmitted to the ECC.
It was further instructed that PIAIL must present its latest audited financial statements to the Finance Ministry without delay.
The Roosevelt Hotel, located in midtown Manhattan, was reopened in May 2023 under a business arrangement with New York City authorities to provide temporary housing for migrants. The three-year lease came with an 18-month guarantee but was terminated prematurely on June 30, 2025, following a change in U.S. government policy.
According to PIAIL, the hotel generated $166 million in revenue between May 2023 and June 2025 but incurred $169 million in expenses and liabilities, resulting in a shortfall of $3 million. The company stated it could cover part of the deficit using $3.5 million in available funds.
With operations suspended from July to December 2025, the hotel will lose all income during this period while still facing $28.6 million in outstanding expenses. The Ministry of Finance has sought a detailed report on PIAIL’s finances and the potential revenue from a proposed deal with Highgate Capital.
