Thursday, June 13

Governments of Pakistan and Dubai inks more than $3 billion investment pact on cooperation in railways, economic zones and infrastructure

Governments of Pakistan and Dubai inks more than $3 billion investment pact on cooperation in railways, economic zones and infrastructure

Governments of Pakistan and Dubai inks more than $3 billion investment pact on cooperation in railways, economic zones and infrastructureGovernments of Pakistan and Dubai inks more than $3 billion investment pact on cooperation in railways, economic zones and infrastructure. Agreement signed at the World Economic Forum in Davos between Pakistan and Dubai Governments. Cooperation covers development of a dedicated freight corridor, multi-modal logistics park, and freight terminals. DP World will carry out infrastructure Improvement at Qasim International Container Terminal, Pakistan’s leading trade gateway and plans to develop an economic zone near the terminal. The governments of the Islamic Republic of Pakistan and Dubai have signed two Inter-Governmental Framework Agreements to strengthen their relations in the marine and logistics sectors, including the potential establishment of a Dedicated Freight Corridor and Economic Zone near Karachi. The agreements were signed at the World Economic Forum in Davos, Switzerland, on 17th January 2024, by Shahid Ashraf Tarar, Federal Minister of Communication, Railways and Maritime Affairs, Islamic Republic of Pakistan, and Sultan Ahmed bin Sulayem, Chairman of Ports, Customs and Free Zone Corporation (PCFC), Government of Dubai. DP World will act on behalf of the Dubai Government, while Pakistan Railways and Port Qasim Authority will act on behalf of the Pakistan Government, for the development of the projects. Dedicated Freight Corridor The rail based Dedicated Freight Corridor is planned to run from Karachi Port on the Arabian Sea, passing through Karachi, Pakistan’s most populous city, to the Pipri Marshalling Yard, approximately 50 kms away. This will decongest Karachi beside improving road safety. It will significantly improve efficiency, transport times and reduce the overall cost of logistics. Headquartered in Lahore, Pakistan Railways is Pakistan’s national, state-owned railway company, owning and operating nearly 8,000 route-kms of railway across the country, from Peshawar in the northwest to Karachi in the south. Qasim International Container Terminal A second framework agreement was signed with Pakistan’s Ministry of Maritime Affairs to dredge the navigation channel. DP World will carry out the capital dredging on behalf of the Government of Dubai. This framework agreement will also see the development of an economic zone at Port Qasim, which aims to attract more than US $3 billion of foreign direct investment. DP World, on behalf of the Government of Dubai, will carry out the development of the economic zone, with the aim of maximising economic activity in Pakistan. Speaking at the signing ceremony, Shahid Ashraf Tarar, Federal Minister of Communication, Railways and Maritime Affairs, said: “DP World has long standing proud presence in Pakistan witnessed by mutually rewarding engagement. Building on the unwavering trust and partnership, the two brotherly countries have decided to further consolidate the economic cooperation through landmark projects. The signing of Investment Framework Agreements highlights the importance of Pakistan as gateway to Asia and commercial dividends associated with its strategic location”. Sultan Ahmed bin Sulayem, Chairman of PCFC and Group Chairman and CEO of DP World, said: “Pakistan is a growing market, and an important trade corridor to Central Asia. We are proud to have contributed to its trading ability through our operations at Qasim International Container Terminal and are honoured to work with various Pakistani government organizations to develop new freight systems and with Port Qasim Authority to enhance port connectivity and investment. These will help serve Pakistan’s growing population, forecast to approach 300 million in the coming decade, and integrate it further into the wider region.”

Editor: Raja Kamran