Pakistan weighs demolition of New York’s Roosevelt Hotel amid IMF-led asset reforms

• Govt mulling joint venture or redevelopment plan for century-old Manhattan landmark, reports Bloomberg
• Advisor to PM on Privatisation says skyscraper proposal among options under consideration
• Move part of $7bn IMF programme to restructure loss-making state enterprises
• PIA expected to be first major asset sold under reform plan, possibly by November

ISLAMABAD/NEW YORK: Pakistan is exploring multiple options for New York’s iconic Roosevelt Hotel — including the possibility of demolishing the century-old building — as part of its broader effort to meet International Monetary Fund (IMF) conditions and restructure loss-making state assets, according to state-run Associated Press of Pakistan citing Bloomberg on Sunday.

Named after former US president Theodore Roosevelt, the hotel, located in midtown Manhattan, was shut down in 2020 following a sharp decline in revenue during the Covid-19 pandemic. The historic 1,000-room property, owned by Pakistan International Airlines Investment Limited (PIAIL), briefly reopened in 2023 to house migrants before closing again. It remains one of Pakistan’s most valuable foreign holdings, acquired in 2000.

Under the $7 billion IMF loan programme, the federal government approved a “transaction structure” for the Roosevelt in July this year. The plan ruled out an outright sale and opted instead for a joint venture (JV) model aimed at maximising long-term value while retaining ownership of the prime Manhattan land.

Muhammad Ali, Adviser to the Prime Minister on Privatisation, told Bloomberg that one of the proposals under review is to raze the building and construct a skyscraper on the site.

“The government is keen on a joint venture where Pakistan will contribute the land and the partner will bring in the equity,” he said. “The other option is to retain the hotel if it makes economic sense.”

Ali said the government expects “clarity in the next few months” after the finalisation of the JV partner and market sounding. He confirmed that the government is also in the process of appointing advisers for the transaction, with bids received from seven groups, including Citigroup Inc., CBRE Group Inc., and Savills PLC.

“A new adviser will be finalised later this month,” he said, noting that the project has been dubbed by some as “the new Ellis Island” because of its role in housing migrants during New York’s recent crisis.

The move is part of a broader privatisation and reform drive agreed with the IMF to offload or restructure inefficient state-owned enterprises (SOEs). According to Bloomberg, the first major asset to be sold could be Pakistan International Airlines (PIA), which has long relied on government bailouts that the cash-strapped state can no longer sustain.

Ali expressed optimism that the PIA sale would be completed by November, saying that several of the country’s leading business groups have expressed interest and possess the financial and managerial capacity to run the airline effectively.

“Around half a billion dollars of investment will be needed to turn the airline around,” he estimated.

In a rare positive development, PIA posted a pre-tax profit in the first half of 2025 — reportedly its first such gain for the period in nearly two decades — ahead of its planned privatisation later this year.

The federal government views both the Roosevelt and PIA transactions as critical tests of its economic reform agenda under the IMF programme, which seeks to reduce fiscal losses from state enterprises and attract foreign investment to stabilise the country’s external finances.