Pakistan, US sign pact to redevelop New York's Roosevelt Hotel
A view of The Roosevelt Hotel in midtown Manhattan in New York City, US, February 24, 2025.PHOTO: REUTERS
Pakistan signed a deal with the United States government on Thursday to jointly redevelop New York's Roosevelt Hotel, allowing Islamabad to unlock the value of one of its most prized overseas investments.
The century-old hotel, owned by Pakistan International Airlines, has been closed since 2020 and is central to Islamabad's International Monetary Fund-backed asset restructuring, which the government has previously estimated could be worth more than $1 billion.
The two countries signed the memorandum today after Prime Minister Shehbaz Sharif's cabinet approved the process.
The Governments of Pakistan and the United States have formally launched a strategic economic initiative, including collaboration with the U.S. General Services Administration (GSA) regarding the operation, maintenance, renovation, and redevelopment of the Roosevelt Hotel in New… pic.twitter.com/p0Gix5TLFX
Reuters saw a document showing a cabinet summary stating that the prime minister cleared the proposal by authorising the Ministry of Defence to sign the non-binding memorandum with the US General Services Administration (GSA), as part of efforts to enhance bilateral and commercial relations.
The defence and privatisation ministries did not respond to a request for comment. The White House and the US Embassy in Islamabad also did not immediately respond to requests for comment.
The agreement comes as Pakistan deepens economic engagement with Washington, including US financing support for the Reko Diq copper and gold mining project in Balochistan, partly owned by Barrick Gold.
Read More: SBP flags delay in Roosevelt loan
PM Shehbaz is currently in Washington to attend the inaugural Board of Peace meeting.
The memorandum, seen by Reuters, says the project "shall be facilitated by the United States General Services Administration and by the Pakistan Ministry of Defence", and will cover the "renovation, operation, maintenance and redevelopment" of the property near Grand Central Terminal. It does not specify financial terms.
The US General Services Administration primarily manages federal property and procurement for US government agencies, and its publicly stated mandate does not typically include commercial redevelopment of foreign state-owned assets. It was not immediately clear under what authority the agency would facilitate the project.