SBP Seeks Resolution as Roosevelt Hotel Debt Issue Worsens

The State Bank of Pakistan (SBP) has raised concerns over the delay in repayment of a National Bank of Pakistan (NBP) loan linked to the Roosevelt Hotel in New York, as the Economic Coordination Committee (ECC) reviewed a $17.6 million financial support request from Pakistan International Airlines Investment Limited (PIAIL).

The Roosevelt Hotel, owned by PIAIL, was reopened in May 2023 under a Migrant Business Arrangement with New York City after its COVID-19 closure. The three-year lease, with an 18-month guarantee, was terminated on June 30, 2025, due to policy changes in the U.S. administration. Since then, the hotel has struggled with financial liabilities and a lack of new income streams.

During the recent ECC session, officials highlighted that the liabilities include union dues, real estate taxes, insurance claims, interest owed to NBP, and administrative costs. The SBP expressed concern over delayed repayments, urging a timely resolution.

The Finance Division revealed that PIAIL had not yet submitted its latest audited financial statements, nor converted NBP’s foreign exchange loan into a rupee-based facility, as earlier recommended.

The ECC instructed the Aviation Ministry to revise the financial plan within a week in consultation with the Finance Division, NBP, SBP, and the Privatisation Commission, and resubmit it after board approval from PIAIL.

An ECC member stated,

“The financial challenges of PIAIL must be addressed through a structured repayment and rationalised funding plan to safeguard national interests.”

Meanwhile, the Finance Division has requested detailed financial projections and information on a potential management contract with High Gate Capital, which could help offset future liabilities. The ECC is expected to reassess the proposal once PIAIL submits updated documents.