Big news has come from America for Pakistan, which is burdened with financial crisis and debt. This country, which is facing poverty, has taken a big gamble to change its fortunes. Pakistan has signed an important agreement with America to earn profits from its valuable foreign assets. It is believed that this step can become a lifeline for the sinking economy.
New York hotel can become a savior
The property on which Pakistan has gambled is the Roosevelt Hotel located near Grand Central Terminal in New York. This historic hotel, which is more than a hundred years old, is owned by the national airline of Pakistan. It is completely closed since the year 2020. On Thursday, an important MoU has been signed between the two countries regarding its redevelopment.
This foreign deal is considered very important for the Government of Pakistan. The country is rearranging its assets with the help of the International Monetary Fund. The government hopes that the operation of this prime location hotel will earn more than one billion dollars. This amount will be a big relief for the country struggling with the shortage of foreign exchange reserves.
Agreement signed between Defense Ministry and American agency
An official report of the cabinet has come out regarding this deal. According to this, the Pakistan Prime Minister has approved the Defense Ministry to sign this non-binding MoU with the General Services Administration of America. This project will be carried forward jointly by both the departments. This special agreement includes renovation, operation, maintenance and redevelopment of the property. However, according to the Reuters report, no clear information has been given yet regarding the cost of this project.
Pakistan is strengthening its economic relations
This agreement of Roosevelt Hotel has happened at a time when Pakistan and America are strengthening their economic relations. This can be gauged from the fact that America is providing financial assistance to the Reco Dick copper and gold mining project in Balochistan, Pakistan. Multinational company Barrick Resources also has a major stake in this important mining project.
At present, Pakistan Prime Minister Shahbaz Sharif himself is on a visit to Washington and is participating in the first meeting of the Peace Board. Despite these efforts at the diplomatic level, the truth is that the economy of the neighboring country is completely dependent on debt. To run the country, huge financial packages from foreign organizations are being continuously resorted to.
Pakistan is living on debt
This cycle of debt can be easily estimated from the recent financial packages. World Bank has approved new financial assistance of 700 million dollars i.e. about 6270 thousand crore rupees to Pakistan. Its objective is to stabilize the economy and improve government services. Apart from this, IMF has also approved a fund of 7 billion dollars to Pakistan.