ISLAMABAD / NEW YORK – October 6, 2025:
Pakistan is considering the future of its iconic Roosevelt Hotel in New York City, with options on the table ranging from redevelopment to demolition, as part of a broader effort to meet structural reform commitments tied to its $7 billion International Monetary Fund (IMF) program.
Government officials confirmed that the century-old property—one of Pakistan’s most valuable overseas assets—may be transformed through a joint venture partnership rather than sold outright. The plan aims to unlock long-term value while retaining ownership of the prime midtown Manhattan site.
Muhammad Ali, Adviser to the Prime Minister on Privatisation, said the government is evaluating several possibilities, including tearing down the historic building to make way for a modern skyscraper.
“The government is looking at a joint venture where Pakistan contributes the land, and the partner brings in the investment,” Ali told reporters in Islamabad. “If retaining the hotel proves financially viable, that option remains on the table as well.”
The Roosevelt Hotel, named after former U.S. President Theodore Roosevelt, was acquired by Pakistan International Airlines (PIA) in 2000. The property closed its doors in 2020 after years of financial losses and was later used temporarily to accommodate migrants arriving in New York City.
Officials say the government expects more clarity in the coming months once a joint venture partner is finalized. Global firms such as Citigroup Inc., CBRE Group Inc., and Savills PLC are reportedly among the groups that have submitted bids to advise on the transaction.
Meanwhile, Pakistan is also advancing efforts to privatize several loss-making state-owned enterprises under the IMF deal. The first major sale could be that of the national flag carrier, PIA, which has long depended on government bailouts.
PIA posted a pre-tax profit in the first half of 2025—its first in nearly two decades—boosting confidence ahead of a potential sale scheduled for later this year. According to Ali, several of Pakistan’s leading business conglomerates have expressed interest in acquiring the airline, with an estimated $500 million investment needed for a full turnaround.
Analysts say both the Roosevelt Hotel restructuring and the PIA privatization mark a significant shift in Pakistan’s approach to managing state assets, as the government moves to reduce fiscal pressure and attract private capital.
