A new international partnership has been established between Pakistan and the United States to transform the historic Roosevelt Hotel in Manhattan, according to an announcement made Thursday by Pakistan’s Finance Division.
The collaborative effort involves working with the US General Services Administration on managing, maintaining, renovating and completely redeveloping the iconic New York property, officials stated.
Both nations have formalized their cooperation through a signed memorandum of understanding. GSA Administrator Edward C. Forst signed on behalf of America, while Federal Minister for Finance and Revenue Sen. Muhammad Aurangzeb represented Pakistan. The signing ceremony was observed by Pakistani Prime Minister Shehbaz Sharif and US special envoy Steve Witkoff.
The agreement creates a structured, time-bound framework for evaluating technical, commercial, and financial aspects of the collaboration. Officials say this approach is designed to promote transparency, organized decision-making, and measurable results.
Given the hotel’s valuable Manhattan location and New York’s complicated zoning and municipal approval requirements, institutional coordination aims to minimize implementation risks, clarify regulatory obligations, and safeguard the transaction’s worth.
Pakistan International Airlines purchased the Roosevelt Hotel in 2000 in partnership with Saudi Prince Faisal bin Khalid Al Saud, 76 years after the Midtown Manhattan icon first opened its doors in 1924. The airline subsequently purchased the prince’s ownership share, gaining complete control of what continues to be one of its most prized international properties.
The building has been rented out at different times, with New York City being the most recent tenant, utilizing it to house migrants. But this February, the city canceled its $220 million rental contract, dealing a major financial blow to the airline.
For Pakistan, the sudden contract cancellation creates significant worries, especially concerning PIA’s expected income. The substantial lease payment served as an essential financial resource for the financially troubled national carrier, providing vital revenue support to the money-strapped airline.
Pakistani officials are now working to maximize the property’s commercial potential as part of a wider privatization initiative, implemented in response to a worsening financial crisis that has compelled the government to restructure and sell off its national airline.
The goal continues to be maximizing returns from this asset in accordance with the government’s privatization plan while enhancing economic relationships between Pakistan and the United States.
