PTDC demands a bailout package worth Rs. 400 billion

The Pakistan Tourism Development Corporation (PTDC) has asked the government to provide a bailout package of worth Rs. 400 billion to the help ashore the drowning organisation. The PTDC has claimed that it has run out of funds
to pay salaries to its employees, who have not been receiving their remuneration for more than three months.

Terrorism activities in the country have gravely damaged a number of business sectors, with PTDC suffering the most. The organisation’s revenues have dropped to an alarming level since the 18^th Constitutional Amendment
and terrorism activities in the country. PTDC managers have demanded a bailout package to bring stability to the organisation and avoid any possibilities of liquidation in the future.

“The PTDC employees have not been receiving their salaries since September this year,” said a senior official of finance wing of the corporation. “The indecisiveness on part of the government that the Pakistan Tourism Development
Corporation will remain under the federal government or it will be devolved to provinces is mainly responsible for delay in payment of salaries.”

Since the government has stopped providing funds to the corporation, the management has not enough resources to pay salaries to its employees in PTDC. Huge depletion of revenue by the terrorism acts in the country has made the
situation even worse. The management has leaded the government to help out the situation with a bailout package so that PTDC employees may get their salaries. They have further demanded the government to decide the future of PTDC so they get at least their
monthly salaries and due amounts.

One solution has been proposed by the management, which involves selling of the vast land owned by PTDC. 200 kanals of land in Zone 5 and a 12 kanal plot close to the building of Privatisation Commission on Constitution Avenue
in Islamabad can be sold out to ease out the financial crisis at present. Almost 800 employees are working at PTDC (which include 400 regular and 400 contractual) and their livelihood is at risk at the moment. The management urged the government to take immediate
steps in this matter to avoid any further complications. 

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Posted by Farhan Hameed on Dec 27 2011. Filed under Business, Pakistan, Politics. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry