• Seeks rationalised plan for costs linked to reopening Roosevelt Hotel
• Barter trade rules with Afghanistan, Iran, Russia overhauled to ease B2B flows

ISLAMABAD: The Economic Co­­or­dination Committee (ECC) on Thursday approved about Rs24 billion in supplementary grants for security-related exp­enditures and ordered a rationalised plan for immediate costs linked to reopening the Roosevelt Hotel in New York.

The ECC meeting, presided over by Finance Minister Muhammad Aurang­zeb, also approved a barter trade mechanism for business-to-business (B2B) operations with Afghanistan, Iran and Russia — the latter two facing US sanctions.

Sources said the Ministry of Defence sought around $17.5 million to meet urgent liabilities at the historic Manhattan property, which could require up to $20m to restart operations pending a joint-venture arrangement through the Privatisation Commission. The hotel’s $200m lease with New York City, under which it housed migrants, was terminated earlier this year.

The ECC directed Pakistan International Airlines Investment Limited (PIA-IL) to hold separate deliberations with the Ministry of Finance to rationalise their demand, which appeared exaggerated to the committee members. It considered a summary submitted by the Ministry of Defence regarding financial support in the form of a Technical Supplementary Grant (TSG) to the Roosevelt Hotel. It expressed support for addressing the most urgent financial requirements of the hotel and directed the ministry to revisit and reconfirm its estimates and resubmit the matter, an official statement said.

Separately, the Privatisation Commis­sion is advancing a long-term joint venture for multi-purpose redevelopment and has received seven requests for proposals. The process was delayed after transaction adviser Jones Lang LaSalle exited in July over a potential conflict of interest; a new adviser is expected to be appointed within two weeks, with the transaction targeted within six months.

Among other decisions, the ECC approved Rs4bn for cash compensation to residents whose land was acquired for the Defence Complex Islamabad, to be arranged by the Finance Division, with the balance to come from the Capital Development Authority.

It also allocated Rs20bn to the Inte­rior Ministry for “maintenance of law and order”, to be released in tranches on demand, and Rs174.8m for law-enforcement requirements of Frontier Corps KP (North), Peshawar.

The ECC also approved a draft SRO at the req­u­­est of the Ministry of Commerce, aimed at amending the B2B Barter Trade Mechanism. Since the introduction of the mechanism in June 2023 for trade with Afghanistan, Iran and Russia, a number of problems have emerged in its implementation.

Sources said the business groups and stakeholders have been complaining about difficulties such as restrictions on sanctioned or non-sanctioned products, the condition of completing imports before exports could take place, etc. These issues slowed down trade and created obstacles for businesses.

To address these concerns, the Ministry of Commerce held detailed consultations with both public and private sector stakeholders, concluding that the list of specific products should be omitted and instead aligned with the general Export and Import Policy Orders.

Published in Dawn, October 3rd, 2025