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Pakistan and the United States have signed a memorandum of understanding to jointly redevelop New York's Roosevelt Hotel, enabling Islamabad to unlock value from one of its most significant overseas assets. The century-old property, owned by Pakistan International Airlines, has remained closed since 2020 and is now being positioned for redevelopment rather than an outright sale. The move aligns with Pakistan's broader programme of restructuring and privatising state-owned assets under its IMF-backed economic reform agenda. The agreement also reflects a broader effort to deepen economic engagement between Islamabad and Washington, as Pakistan seeks foreign investment and strategic partnerships to stabilise its economy and monetise underutilised assets abroad.
Pakistan has reached an agreement with the United States to jointly redevelop New York's Roosevelt Hotel, marking a significant step in its efforts to monetise state-owned assets held overseas. The memorandum of understanding, announced on Thursday, outlines cooperation between the two governments on the operation, maintenance, renovation and redevelopment of the landmark Midtown Manhattan property. Advertisement
The hotel, owned by Pakistan International Airlines, has been closed since 2020 and is considered one of Pakistan's most valuable foreign investments. Islamabad has previously indicated that the property could be worth more than USD 1 billion, making it a central component of the country's privatisation and asset-restructuring plans. These measures form a key pillar of Pakistan's USD 7 billion programme agreed with the International Monetary Fund, under which the government has committed to reducing fiscal pressures and improving the performance of state-owned enterprises.
According to an official statement from Pakistan's finance division, the objective of the agreement is to secure maximum value from the Roosevelt Hotel while strengthening bilateral economic ties with Washington. The deal was negotiated by Steve Witkoff under the leadership of Donald Trump, the statement said. The White House did not immediately comment on the arrangement.
The memorandum does not set out financial terms or a definitive redevelopment model. It states that the project will be facilitated by the United States General Services Administration and Pakistan's Ministry of Defence. The involvement of the US agency is notable, as its publicly stated mandate is primarily focused on managing federal property and procurement, rather than commercial redevelopment of foreign-owned assets. It remains unclear under what authority the agency will support the project.
The agreement comes as Pakistan intensifies economic engagement with the United States across multiple sectors. This includes US financing support for the Reko Diq copper and gold mining project in Balochistan, a long-delayed initiative seen as strategically important for Pakistan's resource sector. Pakistan's Prime Minister, Shehbaz Sharif, is currently in Washington attending the inaugural meeting of Trump's Board of Peace.
Together, these developments signal Islamabad's attempt to combine asset monetisation with diplomacy, using high-value properties such as the Roosevelt Hotel to reinforce economic ties while advancing domestic reform commitments.
Source - Reuters
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