New Delhi:
New York City has pledged $220 million to lease the Manhattan landmark Roosevelt Hotel, owned by Pakistan’s state-owned airline Pakistan International Airlines (PIA). The hotel, with more than 1,200 rooms, is being used to house undocumented migrants for three years under an agreement. This deal will provide some financial help to poor Pakistan. It is believed that this deal will generate much needed revenue for Pakistan and it is expected that this will help in its financial reform efforts.
Why is Vivek Ramaswamy angry?
This agreement has been sharply criticized by American Republican Vivek Ramaswamy. Ramaswamy has made his displeasure public in a social media post. He said that an agreement has been reached to pay for the hotel for illegal immigrants with taxpayers’ money. This hotel is owned by the Pakistani government, which means NYC taxpayers are effectively paying a foreign government to keep people in our country illegally. Ramaswamy said that this is madness.
Why does America want to help
Ramaswamy’s response came after a report by author John Lefevre who said on social media platforms that the hotel is owned by the government of Pakistan, and that the deal was part of a $1.1 billion IMF bailout package to help Pakistan avoid defaulting on its international debt. Was part of.
He added that before this “sweetheart deal”, the hotel had been closed since 2020, was facing long-term occupancy issues and was in dire need of renovation.”
Lefevre said the hotel had been closed since 2020 due to financial struggles and the need for renovation before reopening for this purpose.
What is Pakistan’s strategy?
The lease of the Roosevelt Hotel is part of a broader financial strategy for Pakistan, which is addressing economic challenges. Railways and Aviation Minister Khawaja Saad Rafiq had announced during a press conference in 2023 that the lease agreement is expected to generate revenue of about US$220 million for the Pakistan government. A contract for 1,250 rooms was signed. Geo TV quoted him as saying that it will be returned to the Pakistan government after the lease of three years expires.
The minister elaborated that the contract covered 1,250 rooms and also included a provision to return the hotel to the Government of Pakistan after a period of three years. The deal comes as part of a $1.1 billion International Monetary Fund (IMF) bailout package aimed at preventing Pakistan from defaulting on international debt.
Significance of Roosevelt Hotel
Named after former US President Theodore Roosevelt, the 19-story hotel has long been a landmark in Manhattan. The hotel closed during the pandemic in 2020 as it grappled with declining bookings and operational challenges. It remained closed until earlier this year when New York City signed an agreement to house the migrants.
The reopening of hotels under the migrant housing program has highlighted problems over public spending priorities in the United States.
hotel deal wasteful
As the debate rages on, President-elect Donald Trump has tasked Ramaswamy and Tesla CEO Elon Musk to lead the newly established Department of Government Efficiency (DOGE). The aim of this initiative is to identify and eliminate wasteful government expenditure.
The settlement with the Roosevelt Hotel has become emblematic of broader concerns over resource allocation. This has sparked a discussion in America about balancing domestic needs with international arrangements.
