The finance ministry said on Thursday that Pakistan and the United States had formally launched a strategic economic initiative, including collaboration regarding the operation, maintenance, renovation and redevelopment of the Roosevelt Hotel in New York.

In a statement, the ministry said that the initiative would include collaboration with the US General Services Administration (GSA) for the redevelopment of the hotel.

“This engagement was negotiated and stewarded by US Special Envoy Steve Witkoff under the leadership of President Donald J. Trump,” it said.

“To advance this partnership, both governments have signed an MoU formalising their cooperation,” the ministry added.

The statement said the MoU was signed by GSA Administrator Edward C Forst and Finance Minister Muhammad Aurangzeb, and was witnessed by Prime Minister Shehbaz Sharif and Witkoff.

“It establishes a structured, time-bound framework for joint evaluation of the technical, commercial, and economic parameters of cooperation, reflecting a shared commitment to transparent, disciplined, and mutually beneficial progress,” the statement said.

The statement noted the Roosevelt Hotel’s prime location in Manhattan and the complexity of New York zoning and municipal process, saying the “institutional coordination aims to reduce execution risk, enhance regulatory clarity, and maximize transaction value”.

“Such facilitative frameworks are consistent with international practice in cross-border real estate and infrastructure projects,” it added.

“The objective remains to secure maximum value for this property in alignment with the government’s privatisation strategy while strengthening Pakistan-United States economic ties,” the statement concluded.

The GSA primarily manages federal property and procurement for US government agencies, and its publicly stated mandate does not typically include commercial redevelopment of foreign state-owned assets. It was not immediately clear under what authority the agency would facilitate the project.

Named after former US President Theodore Roosevelt, the century-old property in midtown Manhattan is seen as one of Pakistan’s most valuable foreign assets, which it acquired in 2000. Faced with mounting losses, the over 1,000-room hotel was shut in 2020, and has also operated briefly as a migrant shelter.

The hotel is located near marquee New York destinations such as Grand Central Terminal, Times Square, and Fifth Avenue, placing it in one of Manhattan’s most valuable commercial zones.

Additional input from Reuters