Islamabad, Mar 12, 2025: The Cabinet Committee on Privatisation (CCoP) has resolved to fast-track the sale of the Roosevelt Hotel in New York, a property under the ownership of Pakistan International Airlines.
This decision followed a high-level meeting held on Tuesday.
Deputy Prime Minister and Foreign Minister Senator Ishaq Dar, who presided over the session, instructed the Privatisation Commission to expedite the divestment process of the prestigious Manhattan-based hotel.
The urgency of this move is linked to reports indicating that New York City is set to terminate its lease agreement with the property.
“Efficient management of state-owned assets is crucial,” Dar emphasized, highlighting the significance of the Roosevelt Hotel case within the broader framework of privatisation efforts.
The Privatisation Commission board has recommended executing the hotel’s sale through intergovernmental negotiations while maintaining flexibility in structuring the transaction.
Three potential approaches remain under consideration: an outright sale, a joint venture partnership, or a long-term lease of 99 years.
However, the board’s perspective diverges from that of the financial advisor, who had proposed three distinct strategies: selling the hotel completely, forming a joint venture with a development partner to enhance the property, or securing a 99-year ground lease with a designated developer.
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Unlike the board’s open-ended stance, the financial advisor explicitly endorsed the joint venture model as the most financially advantageous option.
However, Senior cabinet members from the Finance, Power, and Petroleum ministries, along with top officials and secretaries from key government departments, attended the meeting.
The primary focus of discussions was identifying the most viable method for privatising the Roosevelt Hotel.
The committee reaffirmed its commitment to advancing Pakistan’s privatisation strategy, which seeks to enhance economic stability and attract foreign direct investment.
However, this move signifies a major step in Pakistan’s ongoing economic reform efforts, aimed at offloading state-owned enterprises and assets to drive fiscal growth and financial sustainability.
