Islamabad: The government wants to privatize the Roosevelt Hotel in New York, but how to do this privatization? The authorities are confused in this matter and seem to have failed to adopt a clear plan.
Yesterday, the Cabinet Committee on Privatization directed the Privatization Commission to privatize the profitable Roosevelt Hotel, but did not clarify whether the Roosevelt Hotel should be sold completely or in partnership.
The Cabinet Committee has taken this decision in the light of the recommendations of the Ali Pervez Committee. The committee, headed by Petroleum Minister Ali Pervez, had suggested that Roosevelt be sold through open bidding, but they had suggested that the Privatization Commission should choose the best method for privatization, and keep in mind the possible risks while choosing the privatization method.
The Privatization Commission had proposed to privatize the hotel under government-to-government mode, while keeping the options of outright sale, joint venture and 99-year lease open for negotiations.
However, the board’s recommendations were contrary to the Financial Advisor’s proposal. The Financial Advisor had suggested three options, including outright sale, joint venture and 99-year lease, while the Advisor recommended joint venture.
According to a statement issued by the Deputy Prime Minister’s Office, the CCOP has thoroughly reviewed the privatization measures and Deputy Prime Minister Ishaq Dar has directed the Privatization Commission to expedite the privatization process of the hotel. According to the Ali Pervez Committee, no foreign government has shown interest in purchasing the hotel.
