Pakistan and the United States signed a memorandum of understanding (MoU) on February 19, 2026, to jointly redevelop New York’s historic Roosevelt Hotel, owned by Pakistan International Airlines (PIA).
The agreement, announced by Pakistan’s Finance Division, aims to unlock significant value from this prized overseas asset while advancing Islamabad’s privatization efforts for state-owned properties.
The MoU establishes a framework for cooperation on the hotel’s operation, maintenance, renovation, and redevelopment. It was signed by U.S. General Services Administration (GSA) Administrator Edward C. Forst and Pakistan’s Finance Minister Muhammad Aurangzeb, witnessed by Prime Minister Shehbaz Sharif and U.S. Special Envoy Steve Witkoff.
Strategic Economic Initiative Amid Privatization Push
Pakistan views the century-old Midtown Manhattan hotel—closed since 2020—as worth over $1 billion in redevelopment potential. The pact aligns with the government’s strategy to restructure loss-making assets under its $7 billion IMF program, focusing on privatization to generate revenue and ease fiscal pressures.
The collaboration involves the GSA facilitating the project alongside Pakistan’s Ministry of Defence. Negotiated under President Donald Trump’s leadership via envoy Witkoff, the deal strengthens bilateral economic ties, complementing U.S. support for Pakistan’s Reko Diq mining project.
No specific redevelopment plans, timelines, or financial commitments were detailed in the MoU, which serves as a non-binding starting point for technical, commercial, and economic assessments.
Background and Broader Implications
The Roosevelt Hotel, near Grand Central Terminal, previously served as a migrant shelter dubbed the “New Ellis Island” before closing permanently post-pandemic. Owned by PIA for decades, it represents a valuable but underutilized foreign holding for cash-strapped Pakistan.
The agreement signals deepening Pakistan-U.S. engagement, coinciding with Sharif’s Washington visit for Trump’s Board of Peace inaugural meeting. While questions linger about the GSA’s unusual role in a foreign asset, officials emphasize maximizing value and fostering partnership without an outright sale.
This move could pave the way for major redevelopment, potentially transforming the property into a luxury or mixed-use site in a prime location.