Pakistan, US sign agreement to revamp New York’s Roosevelt Hotel

Pakistan and the United States have signed an agreement to jointly redevelop the historic Roosevelt Hotel in New York.The understanding is expected to help Islamabad unlock value from one of its most prominent overseas assets, news agency Reuters reported.

Restructuring and privatisation of state-owned enterprises form a central pillar of Pakistan’s $7 billion programme with the International Monetary Fund (IMF).
The Roosevelt Hotel, a century-old property in Midtown Manhattan owned by Pakistan International Airlines (PIA), has been identified as a key asset within this broader reform strategy, as per Reuters.The hotel has remained shut since 2020.

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Pakistani authorities have previously estimated its value at over $1 billion. Rather than opting for an outright sale, the government has been exploring redevelopment options to maximise returns.

Deal to strengthen Pak-Us ties?

Pakistan’s finance division confirmed that the two countries had signed a memorandum outlining cooperation on the “operation, maintenance, renovation, and redevelopment” of the property.”The objective remains to secure maximum value for this property in alignment with the government’s privatisation strategy while strengthening Pakistan-United States economic ties,” the Pakistani authorities said in a statement, as per Reuters.

The agreement was negotiated by US Special Envoy Steve Witkoff under the leadership of President Donald Trump, Pakistan’s finance ministry said, as per Reuters. However, there has been no statement from the White House as of yet.

Islamabad has been strengthening economic ties with Washington, including US financing support for the Reko Diq copper and gold mining project in Balochistan.

Pakistan’s Prime Minister Shehbaz Sharif is currently in Washington to attend the inaugural meeting of Trump’s Board of Peace.

The role of US agencies

The memorandum does not disclose financial details. It states that the project “shall be facilitated by the United States General Services Administration (GSA) and by the Pakistan Ministry of Defence.”

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The US GSA typically manages federal property and procurement for American government agencies.

Its publicly available mandate does not ordinarily extend to commercial redevelopment of foreign state-owned assets. It remains unclear under what authority the GSA would support the project, as per the Reuters report.