Biotech entrepreneur and Republican presidential candidate Vivek Ramaswamy has voiced sharp criticism over reports that New York City is leasing Manhattan’s iconic Roosevelt Hotel, owned by Pakistan International Airlines (PIA), for $220 million to house undocumented migrants. PIA, a state-owned entity, is controlled by the Pakistani government.
“A taxpayer-funded hotel for illegal migrants is owned by the Pakistani government, which means NYC taxpayers are effectively paying a foreign government to house illegals in our own country,” Ramaswamy posted on X (formerly Twitter). He concluded his statement with an emphatic, “This is nuts.”
NYC-Pakistan Deal: Beginning of A Controversy
The Roosevelt Hotel, a historic property located in the heart of Manhattan, has been closed since 2020 due to low occupancy and urgent renovation needs. Recently, the property reopened under a three-year lease agreement with New York City, which is using it to shelter undocumented immigrants amidst the ongoing housing crisis.
The deal, according to reports, is part of a broader $1.1 billion bailout package from the International Monetary Fund (IMF) aimed at preventing Pakistan from defaulting on its foreign debt obligations.
Author John LeFevre brought the issue to light, describing the arrangement as a “sweetheart deal” that financially benefits Pakistan. “Prior to this sweetheart deal, the hotel had been closed since 2020, having long struggled with occupancy and in dire need of renovation,” LeFevre wrote on X.
Pakistan to Reap Significant Financial Benefits
Under the agreement, New York City will pay $220 million over three years to lease the Roosevelt Hotel. Pakistan’s Railways and Aviation Minister, Khawaja Saad Rafique, confirmed that the revenue generated through this deal will go directly to the Pakistani government.
In July, Rafique stated, “The lease agreement is expected to generate revenues to the tune of around USD 220 million for the Pakistan government.” He added that the 1,250-room property would be returned to Pakistan once the lease period concludes.
Ramaswamy’s Remark Reflects Concern
Ramaswamy’s remarks reflect growing concerns about the allocation of taxpayer funds and the broader implications of the deal. Critics argue that U.S. taxpayer money is indirectly supporting a foreign government through this lease arrangement, which many find problematic given Pakistan’s history of strained relations with the U.S.
The use of the Roosevelt Hotel to house undocumented migrants has also raised questions about New York City’s handling of the migrant crisis. With thousands of asylum seekers arriving in the city, officials have struggled to provide adequate housing and services, leading to controversial decisions like leasing foreign-owned properties.
A Financial Context
The Roosevelt Hotel lease is only one part of Pakistan’s efforts to stabilize its economy. The country has faced significant financial challenges in recent years, including soaring inflation, dwindling foreign reserves, and mounting debt.
The IMF’s $1.1 billion bailout package is designed to address these economic vulnerabilities, but deals like the Roosevelt Hotel lease have sparked criticism for leveraging international assets to meet short-term financial needs.
The agreement has prompted debates over the ethics and optics of such international leases. On one hand, it provides Pakistan with much-needed revenue, while on the other, it raises questions about the responsibilities of local governments like New York City in addressing domestic crises without inadvertently benefiting foreign governments.
