US-Pakistan Warm Relations Highlighted by Roosevelt Hotel Deal

The Roosevelt Hotel, an Italian Renaissance-style landmark in New York City, once a favored spot for Hollywood celebrities, now stands shuttered. Despite its current state, its owners, the government of Pakistan, value it at a billion dollars. In February 2026, Steve Witkoff, a close advisor to Donald Trump, helped broker a deal for the US government and Pakistan to jointly redevelop the hotel. This deal is indicative of a broader warming of relations between the Trump administration and Pakistan.

Pakistan's Diplomatic Ascent

Pakistan has recently emerged as a significant diplomatic player, particularly in mediating between the United States and Iran. This role gained prominence when Pakistan successfully brought the US and Iran to the negotiating table after 50 years of estrangement, a feat that was initially hailed as impossible. Although the subsequent ceasefire between the US and Iran ultimately collapsed, Pakistan hopes its role as a mediator will have lasting positive implications for its international standing.

Pakistan's Prime Minister, Shehbaz Sharif, even nominated Donald Trump for a Nobel Peace Prize, reflecting the strong ties that have developed. Trump has frequently referred to Pakistan's Army Chief, Field Marshal Asim Munir, and the Prime Minister as his "good friends."

The Rise of Field Marshal Asim Munir

Field Marshal Asim Munir is considered the most powerful army chief Pakistan has had since its founding. His influence was underscored by an unprecedented invitation to the White House for lunch, a significant departure from past US policy which typically engaged with elected Pakistani prime ministers to support democracy. Trump, however, prioritized direct engagement with the most powerful figure in Pakistan.

This newfound diplomatic leverage is particularly notable given Pakistan's long-standing global image, which has been shaped by crises such as devastating floods, energy shortages, security concerns, and repeated IMF bailouts. Foreign direct investment in Pakistan has remained stagnant for two decades, and the country is heavily reliant on external financing, currently ranking as the fourth-largest IMF debtor. A strong relationship with the US is crucial for Pakistan to secure loans from the IMF and other Western partners.

Traditionally, Pakistan has relied heavily on financing from China, particularly for the China-Pakistan Economic Corridor. Amidst US-China tensions, Pakistan has skillfully managed to maintain relations with both superpowers, even incorporating both American and Chinese fighter jets into its military fleet.

Mending US-Pakistan Relations

US-Pakistan relations have not always been smooth. Distrust from the US side stemmed partly from the discovery and killing of Osama Bin Laden in Pakistan. However, a turning point occurred in May 2025 during a four-day conflict between India and Pakistan. India claimed to have conducted targeted military strikes, while Pakistan asserted it shot down five Indian jets in retaliation. The conflict ended in a ceasefire, for which Trump quickly claimed credit.

While India rejected Trump's claims of mediation, Pakistan was effusive in its praise, with its Prime Minister suggesting Trump could have saved 35 million lives.

Economic and Business Opportunities

The warming relations have also translated into economic benefits. By the end of 2025, Pakistan and the US signed a memorandum of understanding for investment in Pakistan's critical minerals. During his White House visit, the Army Chief reportedly presented President Trump with a briefcase full of minerals and gems.

Furthermore, Pakistan has forged a relationship with World Liberty Financial, a cryptocurrency venture co-founded by Donald Trump Jr., Eric Trump, and Zachary Witkoff (son of Steve Witkoff). A memorandum of understanding allows the company to operate in Pakistan, which has become the world's third-largest crypto market with over 40 million users. This engagement with Trump's inner circle has helped build trust between Washington and Islamabad.

Pakistan's Role in US-Iran Diplomacy

Pakistan's role as a mediator between the US and Iran was facilitated not only by its relationship with the Trump administration but also by its strong ties with Iran. Sharing a massive border and a significant Shia population, Pakistan enjoys a level of trust with Iran that is rooted in political, neighborly, religious, and cultural connections.

In the early stages of the talks, Pakistan acted as a conduit, passing messages between the two nations. In April 2026, Pakistan hosted high-level talks in Islamabad, with the US Vice President meeting top Iranian officials – a rare occurrence in decades. Pakistan went to great lengths to ensure the success of these talks, even requisitioning an entire luxury hotel and branding coffee cups with "brewed for peace."

For Pakistan, a permanent ceasefire between the US and Iran held the promise of significant economic gains, including increased regional trade and the potential for a long-stalled gas pipeline between Iran and Pakistan, which could alleviate Pakistan's energy shortages. However, these hopes are currently on hold as the US and Iran have returned to conflict. Pakistan also faces ongoing challenges on its border with Afghanistan, with both countries engaging in conflict since the beginning of the year.

The Future of Pakistan's Diplomatic Gains

While Pakistan's global perception has undoubtedly shifted positively, the longevity of these gains remains uncertain. Diplomacy is often characterized by national interests rather than enduring friendships, and Trump's allegiances can be fickle, as evidenced by his shifting relationship with India's Prime Minister Modi.

Ultimately, Pakistan's pursuit of a strong relationship with the US is driven by a need to secure the legitimacy of its government and regime. The question remains how long this diplomatic momentum will last.