- Move aims to unlock value from Pakistani state-owned asset under IMF-backed privatisation drive
KARACHI – Pakistan has entered into a formal agreement with the United States government to jointly redevelop the historic Roosevelt Hotel in Midtown Manhattan, Islamabad announced on Thursday, marking a significant step in its efforts to monetise overseas state assets.
The memorandum of understanding (MoU), signed between the two governments, outlines plans for cooperation on the operation, maintenance, renovation, and redevelopment of the century-old property, which has remained closed since 2020.
Pakistan’s finance division described the agreement as a strategic initiative to “secure maximum value for this property in alignment with the government’s privatisation strategy while strengthening Pakistan-United States economic ties.”
Asset Valuation and Strategic Importance
The Roosevelt Hotel – owned by Pakistan International Airlines (PIA) – is estimated by Islamabad to be worth over $1 billion, making it one of Pakistan’s most valuable overseas investments. The property has been identified for redevelopment rather than an outright sale as part of Pakistan’s broader efforts to restructure and privatise state-owned enterprises.
These restructuring measures form a central component of Pakistan’s $7 billion Extended Fund Facility arrangement with the International Monetary Fund (IMF), which requires the cash-strapped South Asian nation to improve returns from state assets and reduce fiscal losses from public sector enterprises.
Bilateral Cooperation Framework
According to the finance division’s statement, the agreement was negotiated by U.S. Special Envoy Steve Witkoff under the leadership of President Donald Trump. The White House had not issued a response to requests for comment at the time of reporting.
The memorandum, reviewed by Reuters, specifies that the project “shall be facilitated by the United States General Services Administration and by the Pakistan Ministry of Defence.” However, the involvement of the General Services Administration – which typically manages federal property and procurement for U.S. government agencies – raises questions about the implementation framework, as its publicly stated mandate does not conventionally extend to commercial redevelopment of foreign state-owned assets. The legal basis for the agency’s facilitation role remains unclear.
Broader Economic Engagement
The redevelopment agreement comes amid deepening economic ties between Islamabad and Washington. The U.S. has recently provided financing support for the Reko Diq copper and gold mining project in Pakistan’s Balochistan province, one of the world’s largest untapped mineral deposits.
Pakistan’s Prime Minister Shehbaz Sharif is currently in Washington to attend the inaugural meeting of Trump’s Board of Peace, underscoring the warming bilateral relationship.
The Roosevelt Hotel, which opened in 1924 and has hosted numerous U.S. presidents and celebrities over its century-long history, was acquired by PIA in 1979. Its redevelopment is expected to be closely watched as a test case for Pakistan’s ability to extract value from state-owned assets abroad while navigating complex regulatory environments.
BY: The Times Union
