Connect with us

Pakistan

PIA’s Roosevelt Hotel leased to NY govt for 3 years against $220m

Published

on

  • 1,025 rooms of hotel handed over to NYV government for 3 years.
  • As many as 479 employees are working in the hotel.
  • Initial earnings from the hotel have already started pouring in.

LAHORE: Minister for Aviation and Railways Khawaja Saad Rafique said Sunday that a contract has been signed with the New York City government to operate the renowned Roosevelt Hotel of the Pakistan International Airlines (PIA) situated in New York for three years.

In a press conference held at the Allama Iqbal International Airport, the minister said that revenue of $220 million would come to the country as a result of the agreement.

Giving details of the agreement, he said that 1,025 rooms of the hotel would be handed over to the New York City government for three years and the initial earnings from the hotel had started pouring in.

Under the agreement, one-year business was guaranteed. However, he hoped the hotel business would continue for all three years.

He said there were several issues involved in the Roosevelt case like the hotel was at risk of being declared a landmark after which the building could not be altered.

However, now the danger had subsided for at least three years. The minister said that earlier, the hotel had been closed since the COVID-19 period, and an amount of $25 million was being spent on the closed building and $20 million were pending as liability.

He said that 479 employees were working in the hotel, which was a big number, and it was difficult for the hotel to terminate them from jobs due to US labour laws.

However, now after the agreement, this number would be decreased to 77 at the end of the contract period. He thanked the New York City government for its cooperation.

Privatisation

Regarding the outsourcing of airports in Pakistan, the minister said that three international airports, Lahore, Karachi and Islamabad, were being outsourced and made it clear that outsourcing did not mean privatisation.

In a first, the Islamabad airport would be outsourced. He said that only the operation of the airports would be outsourced and not the land or property.

As a result of the arrangement, new contractors would develop, improve and operate the airports, and after the completion of the agreement period, the contractors would hand over the airports to the government again.

He said the current administration had put it on track and soon agreements would be signed with the best international airport operators. A credible company, the International Finance Corporation (IFC) of the World Bank, had been given the task of outsourcing the airports as no Pakistani company had experience in this regard.

He said that several airports, including Madina Munawwarah, Istanbul, Dubai and others, were being operated through the model being introduced in Pakistan now.

The minister said that the contracts would be given through open bidding and several international contractors were showing interest in this regard.

He clarified that no employee would be expelled from service.

Upgradation

Rafique said that the Civil Aviation Authority (CAA) was also launching high-profile projects in which runways at the Quetta Airport would be reconstructed and upgraded.

He said the Faisalabad runway was already under construction which would be operational soon and Lahore airport’s runways would also be upgraded.

Rafique said that upgrade work of the Karachi Airport was already undergoing while Gwadar International Airport was also under construction and would become operational soon.

For the first time, the Hajj operation from the Quetta Airport was successfully in process and the people of Balochistan were going for Haj through this airport.

Two more airports, Sukkur and Dera Ismail Khan, would be converted into international airports to facilitate the citizens of the area.

Plane impound

Discussing the issue of a B777 of Pakistan International Airlines (PIA) stopped by the authorities in Kuala Lumpur, Malaysia, the minister said that the issue was resolved by the legal team of PIA in 72 hours and now the plane had reached Pakistan after carrying the passengers.

Giving details, he said the aeroplane was a leased aircraft and the owner company unethically went to the Malaysian court where the court seized the flight in an ex-party decision.

PIA was not heard, he said, adding that if the court had heard PIA, the incident would not have happened.

He thanked the Malaysian ambassador in Pakistan for his cooperation.

He said PIA was a complicated case, adding that several steps were needed to upgrade the department. Some improvements had been made in the flights like better food quality, seating and services, but it needed several other things.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

VPN use is neither illegal nor un-Islamic, according to the head of the Council of Islamic Ideology.

Published

on

By

Dr. Raghib Naeemi, Chairman of the CII, discussed his views on social issues, legal reforms, and VPN implementation.

According to Raghib Naeem, using a virtual private network (VPN) causes blasphemy, religious defamation, or the spread of disturbance, which makes it unlawful and un-Islamic.

He claimed that within certain bounds, Article 19 guarantees social peace, religious tolerance, and national integrity.

A query on the seminary registration issue was answered by the CII chairman, who stated that if there is proof of money laundering through madrassas, the management of those institutions will face legal action.

Additionally, he stated that it is unethical and illegal to exchange human baby milk.

Continue reading: Another declaration on VPN use from the Council of Islamic Ideology

In addition to suggesting legislation capping dowries at one tola (11.66 grams) of gold, Dr. Raghib Naeemi suggested moving the authorization for a second marriage from the wife to the Union Council.

Prior to this, the Council of Islamic Ideology stressed the significance of encouraging responsible digital citizenship and utilizing technology in accordance with Islamic teachings.

Though their use should be constructive and appropriate, VPNs are not intrinsically illegal, according to the Council of Islamic Ideology.

“Thoughts and ideas can be expressed effectively on social media for admirable ends. The statement said, “Muslims must adhere to Islamic teachings, utilizing social media to spread Islamic knowledge, education, and training.”

Continue Reading

Latest News

Pakistan is positioned among the leading solar markets due to escalating electricity expenses.

Published

on

By

Pakistan has quickly grown to be a major solar market as people and companies there look for ways to reduce their skyrocketing electricity costs. Within two or three years, Pakistan has emerged as one of the world’s biggest importers of solar panels.
The World Economic Forum reports that Pakistan is the third-largest importer of Chinese solar panels, having purchased 13 gigawatts of solar panels in the first half of the current fiscal year. Over 30% of the nation’s 46 gigawatts of total power generation capacity in 2023 is presently derived from imported panels.

This change is mostly caused by the rising demand for alternative energy sources as a result of rising electricity prices. In addition, solar energy has become more affordable due to a 90% decrease in solar panel prices over the last ten years. Government initiatives like the introduction of net metering and the repeal of the 17% sales tax have further sped up the adoption of solar.

According to experts, careless contracts with Independent Power Producers (IPPs) are to blame for Pakistan’s expensive electricity. According to the Institute for Energy Economics and Financial Analysis, Pakistan’s capacity payments from 2019–20 to 2023–24 were PKR 6 trillion, or roughly $21.5 billion, which made the country’s energy affordability situation worse.

Solarisation is still gaining traction as a practical way to address Pakistan’s energy problems, offering advantages for the economy and the environment. Pakistan has quickly grown to be a major solar market as people and companies there look for ways to reduce their skyrocketing electricity costs. Within two or three years, Pakistan has emerged as one of the world’s biggest importers of solar panels.
The World Economic Forum reports that Pakistan is the third-largest importer of Chinese solar panels, having purchased 13 gigawatts of solar panels in the first half of the current fiscal year. Over 30% of the nation’s 46 gigawatts of total power generation capacity in 2023 is presently derived from imported panels.

This change is mostly caused by the rising demand for alternative energy sources as a result of rising electricity prices. In addition, solar energy has become more affordable due to a 90% decrease in solar panel prices over the last ten years. Government initiatives like the introduction of net metering and the repeal of the 17% sales tax have further sped up the adoption of solar.

According to experts, careless contracts with Independent Power Producers (IPPs) are to blame for Pakistan’s expensive electricity. According to the Institute for Energy Economics and Financial Analysis, Pakistan’s capacity payments from 2019–20 to 2023–24 were PKR 6 trillion, or roughly $21.5 billion, which made the country’s energy affordability situation worse.

Solarisation is still gaining traction as a practical way to address Pakistan’s energy problems, offering advantages for the economy and the environment.

Continue Reading

Latest News

Ghee, cooking oil prices see massive hike across Pakistan

Published

on

By

The costs of critical kitchen necessities, such as banaspati ghee and cooking oil, have escalated by up to 20% in the last two months, placing households under heightened financial strain.

The increase occurs notwithstanding government assertions of a declining inflation trend, raising apprehension among individuals already contending with elevated living expenses.

Reports indicate that the price of ghee has escalated by Rs30 to Rs120 per kilogram in multiple places, while the cost of cooking oil has surged by Rs50 to Rs150 per litre. Retailers have verified that the increase is impacting households across the nation, with costs differing according to brand and quality.

Rates for ghee and cooking oil in December 2024

The retail price of premium-grade ‘A’ quality ghee currently varies from Rs505 to Rs559 per kilogram. In Lahore and other metropolitan areas, the price of Sufi ghee has escalated to Rs350 per kilogram. Simultaneously, mid-range ‘B’ quality ghee is priced between Rs440 and Rs500 per kilogram.

The prices of cooking oil have risen correspondingly, with retailers attributing the escalation to the surging costs of raw materials in the global market. Wholesale distributors have identified global supply chain disruptions as a major contributor to the price increase.

The Consumer Price Index inflation indicates a trend of slowing.

Notably, the increase in ghee and oil prices coincides with data from the Pakistan Bureau of Statistics (PBS) showing a slowdown in core inflation. The Consumer Price Index (CPI) for November 2024 was 4.9%, a significant decrease from 7.2% in October 2024.

This figure indicates a notable enhancement relative to the 29.2% inflation documented in November 2023.

In November 2024, inflation rose by 0.5% month-on-month, reflecting a deceleration relative to the 1.2% increase observed in October. Nevertheless, for economically challenged households, this statistical enhancement provides minimal comfort since the costs of vital goods persist in escalating unabated.

Continue Reading

Trending