QGC to build 7 star hotel in Sindh Province

Karachi: The Qatar Group of Company (QGC) has annulled the agreement with Sindh government to construct a 7-star hotel at a cost of around one billion dollars at Shahrae Faisal.

Well informed sources in Sindh Planning and Development department told Business Recorder on Monday that QGC had signed Memorandum of Understanding (MoU) with Sindh government for the construction of a 7-star hotel at the prime route towards airport in July 2007.

To a question, they said that due to the political uncertainty in the country, the department was facing difficulties to facilitate the company in getting construction approval from several concerned departments. Sources said that the firm had been waiting for approval from the concerned provincial government departments to start the construction work for the last several months, which created negative impact on the investor besides encouraging it to annul the contract for constructing the proposed project of 7-star hotel.

They apprised that after the martyrdom of Benazir Bhutto, the company had sent a letter to department informing that the 7-star hotel would not be constructed unless a democratic government is established in the country. Therefore, the company has decided to cancel the agreement with Sindh government after thoroughly analysing Pakistan's current political scenario, sources added. Sources said that the think-tank of the firm believed that political instability would create hurdles in the construction of a 7-star hotel and it would bear huge losses in the project.

'Company feared that if they set out the project in current circumstances, the huge investment would be stuck during its construction besides facing difficulties to continue the project in any future untoward situation, therefore company has decided to annul the agreement,' sources revealed. They said that the foreign investments for other proposed projects were now based on country's political stability, which would only be possible after conducting fair and free polls.