Pakistan, US launch strategic economic initiative with Roosevelt Hotel redevelopment partnership

Pakistan and the United States have launched a strategic economic initiative that includes joint cooperation on the operation, renovation, and redevelopment of the Roosevelt Hotel in New York, the finance ministry said on Thursday.

Both governments signed a memorandum of understanding (MoU) to establish a structured, time-bound framework for assessing technical, commercial, and economic aspects of the project. The MoU was signed by US General Services Administration (GSA) Administrator Edward C Forst and Finance Minister Muhammad Aurangzeb, and witnessed by Prime Minister Shehbaz Sharif and US Special Envoy Steve Witkoff.

The ministry said the engagement was negotiated by Witkoff under the leadership of President Donald J. Trump, adding that cooperation with the GSA would help reduce execution risks, improve regulatory clarity, and maximise transaction value, given the complexity of New York zoning and municipal processes.

The government said the objective is to secure maximum value for the Manhattan property in line with Pakistan’s privatisation strategy, while strengthening bilateral economic ties.

The ministry described such facilitative frameworks as consistent with international practice in cross-border real estate and infrastructure projects. However, it remains unclear under what authority the GSA, which primarily manages federal property and procurement for US agencies, would facilitate the redevelopment of a foreign state-owned commercial asset.

The Roosevelt Hotel, acquired by Pakistan in 2000, is considered one of the country’s most valuable foreign assets. The more than 1,000-room hotel was shut in 2020 amid mounting losses and has also briefly served as a migrant shelter. Located near Grand Central Terminal, Times Square, and Fifth Avenue, it sits in one of Manhattan’s most valuable commercial zones.