SBP Seeks Resolution as Roosevelt Hotel Debt Issue Worsens
The State Bank of Pakistan has shown concern over the growing financial crisis linked to the Roosevelt Hotel in New York which is owned by Pakistan International Airlines Investment Limited. After the hotel’s lease ended in June 2025 its financial problems have increased creating pressure on both the company and the national economy. The debt includes unpaid taxes employee dues insurance expenses and interest on foreign loans. In response the Economic Coordination Committee has asked the airline’s investment arm to prepare a new financial plan of about seventeen million dollars with the help of the State Bank the National Bank of Pakistan and the Privatisation Commission. The State Bank has called for quick action to protect Pakistan’s interests and prevent further losses.
Details of the Debt and the Growing Crisis
The Roosevelt Hotel has built up a large amount of debt since its closure and the end of its lease. With no income coming in the property continues to face expenses for maintenance staff payments and loan interest. The investment company has not yet submitted updated audit reports or converted its foreign debt into local currency as advised earlier.
The Economic Coordination Committee has given a short deadline for submitting a new repayment plan. The State Bank is keeping a close watch on the issue and has warned that delays could lead to more financial losses and the further decline of one of Pakistan’s key international assets.
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Impact on Governance and Future Planning
The ongoing debt problem of the Roosevelt Hotel highlights the larger challenges Pakistan faces in managing its state owned assets abroad. It shows the need for stronger financial control regular audits and proper management to avoid such crises in the future. The involvement of the State Bank also points to the importance of protecting public investments and ensuring transparency in financial decisions. For Pakistan International Airlines and the government the next few months will be important in deciding whether the hotel can be stabilised or if a deeper restructuring plan is needed.
This situation reminds policymakers that financial discipline and accountability are vital for protecting national assets and maintaining public trust in state owned enterprises.
