Deputy PM asks authorities to expedite privatization of Pakistan-owned Roosevelt Hotel in New York

ISLAMABAD: Deputy Prime Minister Ishaq Dar has asked authorities to expedite privatization of Pakistan-owned Roosevelt Hotel in New York, Pakistani state media reported on Tuesday, amid Islamabad’s efforts to streamline its fragile $350 billion economy.
Roosevelt Hotel, a 19-story building located at a prime location in New York, was inaugurated in Manhattan on September 22, 1924. Named after the 26th President of the United States, Theodore Roosevelt, Pakistan’s national airline leased it in 1979 through the Pakistan International Airlines Investments Limited (PIA-IL).
The hotel closed its doors to guests in Dec. 2020 after the coronavirus pandemic shuttered the tourism industry worldwide. In 2023, New York City (NYC) administration struck a $220 million, three-year deal with PIA to convert the hotel into a shelter, as per a report in The New York Times.
On Tuesday, Dar presided over a meeting of Pakistan’s federal cabinet committee on privatization in Islamabad to review the progress of the ongoing privatization initiatives, including that of the Roosevelt Hotel in New York, the Radio Pakistan broadcaster reported.
“Deputy Prime Minister urged the Privatization Commission to fast track the privatization process of the Roosevelt Hotel,” the report read.
Roosevelt Hotel and PIA are among the main entities Pakistan is pushing to privatize as part of economic reforms undertaken by Islamabad under its loan agreements with the International Monetary Fund (IMF), with a $7 billion extended funds facility agreed in Sept. being the latest such bailout.
The development comes at a time when an IMF mission is visiting Pakistan to review the South Asian country’s progress on key IMF conditions as part of the first review of the $7 billion bailout. A successful review will result in the release of around $1 billion to Pakistan as second installment under the program.
Finance Minister Muhammad Aurangzeb last month said they were confident of meeting targets of the IMF program. Pakistan was able to build some trust with the IMF by completing a short-term, nine-month program last year.
Previous loan programs in Pakistan ended prematurely or saw delays after the governments at the time faltered on meeting key conditions. However, the government of Prime Minister Shehbaz Sharif is making rigorous efforts to boost trade and foreign investment in order to revive the country’s economy and end its reliance on foreign loans.