Pakistan and the United States formally launched a strategic economic initiative Thursday, including a pact to redevelop New York’s Roosevelt Hotel, a landmark property owned by Pakistan International Airlines (PIA). The agreement, formalized through a Memorandum of Understanding (MoU), will involve collaboration with the U.S. General Services Administration (GSA) for the operation, maintenance, renovation, and redevelopment of the hotel, according to a statement released by Pakistan’s Ministry of Finance.
The MoU was signed by GSA Administrator Edward C. Forst and Pakistan’s Finance Minister Muhammad Aurangzeb, with Prime Minister Shehbaz Sharif and U.S. Special Envoy Steve Witkoff serving as witnesses. The initiative was negotiated and “stewarded” by Witkoff under the leadership of former President Donald J. Trump, the Ministry of Finance stated.
The agreement establishes a “structured, time-bound framework” for evaluating the technical, commercial, and economic aspects of the cooperation, aiming for a “transparent, disciplined, and mutually beneficial” outcome. The Ministry of Finance highlighted the Roosevelt Hotel’s prime location in Manhattan and the complexities of New York City’s zoning and municipal processes, stating that the institutional coordination is intended to mitigate execution risks and maximize the property’s value.
The GSA’s involvement is notable, as its primary mandate centers on managing federal property and procurement for U.S. Government agencies, and does not typically extend to the commercial redevelopment of foreign state-owned assets. The specific authority under which the agency will facilitate the project remains unclear.
The Roosevelt Hotel, acquired by Pakistan in 2000, has been shuttered since 2020 due to mounting financial losses. It briefly functioned as a migrant shelter before being fully closed. Located near Grand Central Terminal, Times Square, and Fifth Avenue, the hotel occupies a valuable commercial zone in Midtown Manhattan.
The Ministry of Finance indicated the objective is to “secure maximum value for this property in alignment with the government’s privatisation strategy while strengthening Pakistan-United States economic ties.”
