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

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  • 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.

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‘Green City’ is how LHC sees Multan in order to combat pollution.

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On Friday, officials were ordered by the Lahore High Court to turn Multan into a “green city” in order to lessen the consequences of environmental pollution.

On Tahir Jamal’s petition, LHC Justice Jawad Hassan rendered a thorough decision.

In order to have its own 2020 order put into effect, the petitioner had prayed before the court.

The responsible officials were instructed by the court to create a strong plan for turning Multan into a green city.

All departments were instructed to designate spokespersons by the LHC.

All parties involved in this matter must be consulted, according to the specified instructions.

A long-term strategy is needed to address Multan’s environmental contamination and declining AQI, according to Justice Jawad Hassan.

Every department was ordered by the court to provide a report on a monthly basis.

The written directive stated that Multan’s efforts to address the pollution were insufficient.

The director general of PHA Multan told the court that 14,825 trees were planted in the city in 2024.

According to the director general of PHA, DG Khan, 28,471 trees were planted in 2024.

10,560 trees were planted in private housing societies by the Multan Development Authority, it was further said.

The court ordered that the matter be heard on the first Tuesday of each month.

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The Minister announced that contracts with 12 Independent Power Producers (IPPs), including those utilizing bagasse, had been evaluated; negotiations have concluded for an additional 15 IPPs.

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Owais Leghari, the federal minister of energy, disclosed that power rates are already falling as a result of renegotiations with independent power providers (IPPs), with more substantial relief possible.

After the agreements are finalized, the minister tells the National Assembly’s Power Committee that power rates could drop by Rs 10–12 per unit.

Leghari revealed that IPP-imposed capacity charges account for 75% of electricity expenses. “The public is being affected by the revision of these agreements,” he said, adding that agreements with 12 IPPs—including those that use bagasse—had been examined and negotiations for 15 more have been concluded.

“These changes will be approved by the cabinet next week, and within a month, decisions about captive power plants will be made,” he continued.

“The minister also announced that eight bagasse power plant adjustments have been approved and that five IPP contracts have been terminated. 16 more IPPs, including government-owned facilities, are now in talks. These renegotiations have already resulted in an electricity pricing reduction of Rs 4 per unit for domestic consumers.

Leghari addressed the issue of electricity theft in Khyber Pakhtunkhwa (KP) and charged that the provincial government had not cooperated in spite of previous agreements. Before agreeing to cut off illicit connections, he disclosed that the KP chief minister had insisted on an unfettered supply of electricity to feeders with high rates of theft.

Leghari stated, “We carried out this agreement for 75 days, but the provincial administration did not take down the hooks, which cost our company an additional Rs 6 billion.”

Concerns about the continuous load shedding in KP were voiced by members of the load shedding and K-Electric tariff committee, which led to additional talks. “We do not believe that the proposed tariff is justified,” Leghari said, criticizing K-Electric’s multi-year tariff as a significant burden on consumers.

Walkout
At the meeting, committee members Shehryar Mehr, Sher Ali Arbab, and Junaid Akbar walked out in protest of a plan to discuss electricity supply company issues in Hyderabad and Sukkur behind closed doors.

In particular, by renegotiating contracts with IPPs and resolving inefficiencies, the energy minister reiterated the government’s commitment to reducing the financial burden on consumers through energy sector reforms.

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Pilgrims, good news! Applications for the Hajj are reopening.

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On Thursday, the Ministry of Religious Affairs declared that applications for the government Hajj program’s remaining quota will once again be accepted.

The ministry made this choice in an effort to guarantee that the entire quota is used and to prevent sending any seats back to Saudi Arabia that are not used.

On a first-come, first-served basis, an extra 5,000 pilgrims will be allowed to apply starting next week.

These applications will be accepted during a designated timeframe; the ministry is now considering a proposal to restrict the submission period to five days.

Under the Hajj program, the government had previously received 81,500 applications; the decision to accept additional pilgrims is intended to provide those who were unable to reserve a seat in the first round of applications a chance.

To further streamline the procedure and guarantee efficiency and justice, no lottery will be held for the new applications, in contrast to the previous one.

Officials stressed that this action is meant to guarantee that no chance to bring pilgrims to the Holy Land is missed, in addition to optimizing the quota distribution.

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