- Deal negotiated, stewarded by US special envoy: finance ministry.
- Pakistan, United States sign MoU to formalise their cooperation.
- Century-old hotel in New York owned by PIA closed since 2020.
Pakistan and the United States have formally launched a strategic economic initiative, including collaboration with the US General Services Administration (GSA) regarding the operation, maintenance, renovation, and redevelopment of the Roosevelt Hotel in New York.
According to a statement issued by the Ministry for Finance on Thursday, the deal was negotiated and stewarded by US Special Envoy Steve Witkoff under the leadership of President Donald Trump.
“To advance this partnership, both governments have signed a Memorandum of Understanding (MoU) formalising their cooperation,” it said.
The MoU was executed by GSA Administrator Edward C Forst on behalf of the US and Finance Minister Muhammad Aurangzeb on behalf of Pakistan, and witnessed by Prime Minister Shehbaz Sharif and United States Special Envoy Steve Witkoff.
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.
The agreement establishes a structured, time-bound framework for joint evaluation of the technical, commercial, and economic parameters of cooperation, reflecting a shared commitment to transparent, disciplined, and mutually beneficial progress, per the statement.
Given the Roosevelt Hotel’s prime Manhattan location and the complexity of New York zoning and municipal processes, institutional coordination aims to reduce execution risk, enhance regulatory clarity, and maximise transaction value. Such facilitative frameworks are consistent with international practice in cross-border real estate and infrastructure projects.
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 century-old hotel has been closed since 2020 and is central to Islamabad’s IMF-backed asset restructuring, which the government has previously estimated could be worth more than $1 billion.
The agreement comes as Pakistan deepens economic engagement with Washington, including US financing support for the Reko Diq copper and gold mining project in Pakistan’s Balochistan, partly owned by Barrick Resources.
Prime Minister Shehbaz Sharif is currently in Washington to attend the inaugural Board of Peace meeting.
— With additional input from Reuters
