PTDC Closes Operations in North, Terminates All Employees
According to a notification issued on July 2, PTDC has closed operations of all 36 of its motels in the north and terminated all 400 of the employees there.
According to a notification issued on July 2, Pakistan Tourism Development Corporation (PTDC) has closed operations of all 36 of its motels in the north and terminated all 400 of the employees there.
The decision comes after Prime Minister Imran Khan announcement of reopening the tourism industry last month. However, the notification read that the PTDC had been suffering from losses continuously.
“Due to continuous and irreparable financial losses having no other resource and the current Covid-19 pandemic, the federal government and PTDC Board of Directors unanimously resolved to close down the operations of the company,” the notification stated.
Furthermore, it said that the federal government and the PTDC had done an “in-depth analysis of the present situation, and consideration of the facts and circumstances and in the best interest of the employees, company and shareholders for survival and future viability, the corporation was left with no other option but to take these painful decisions”.
National Tourism Coordination Board (NTCB) Chairperson Sayed Zulfikar Abbas Bukhari also reached out to assure the people that they don’t plan on shutting down the PTDC but are rather working on the restructuring of the corporation.
It will cont to work as a federal implementation body under NTCB,new structure is proposed in consultation with field experts.
For those causing hue&cry,there’s no need for it-PTDC is finally on its way to become a more efficient org with better workforce & improved policy making— Sayed Z Bukhari (@sayedzbukhari) July 2, 2020
“This [closing the motels for restructuring] was important to do because over time, due to mismanagement of resources and political appointments, it had become a stagnant organisation running in loss,” he tweeted.
Aftab Rana, one of the members of the NTCB, remarked that the motels had already been closed due to the COVID-19 pandemic.
“However, it has already been decided that the federal government would withdraw from the business mode of the corporation and exclusively promote tourism and that its properties will be privatised,” he said.
The corporation had amassed losses of around Rs 1 billion. “It has been running on taxpayers’ money and only paying salaries to an unproductive staff. There was no income being generated through its properties.
“It is a hard decision to close down these operations, but keeping all these considerations in view the government has decided to privatise PTDC properties. There is no other option,”
PTDC had offered $1.4 billion package as a golden handshake to all its employees in the north. However, the employees took the matter to the court.
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