he agreement was finalized after Prime Minister Shehbaz Sharif’s cabinet approved the proposal. According to official documents, the Ministry of Defense has been authorized to sign a non-binding memorandum with the US General Services Administration.

The Roosevelt Hotel is considered one of Pakistan’s most valuable overseas assets. The government has earlier estimated that its restructuring plan, backed by the International Monetary Fund (IMF), could unlock more than $1billion in value.

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Under the memorandum, the project will include the “renovation, operation, maintenance, and redevelopment” of the property located near Grand Central Terminal in Manhattan. However, the financial details of the agreement have not been disclosed.

The project will be facilitated by the United States General Services Administration and Pakistan’s Ministry of Defense. The GSA mainly manages federal properties and procurement for US agencies, and it is not yet clear under what authority it will assist in this commercial redevelopment.

The deal comes at a time when Pakistan is expanding economic cooperation with Washington. The US is also supporting financing for the Reko Diq copper and gold mining project in Balochistan, partly owned by Barrick Gold.

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Prime Minister Shehbaz Sharif is currently in Washington to attend the inaugural Board of Peace meeting.

The redevelopment of the century-old hotel is being seen as a major step in Pakistan’s effort to restructure state-owned assets and improve its financial position.