Davos,19 January 2024,(GNP): Pakistan and Dubai have signed a investment agreement exceeding $3 billion, encompassing collaboration in railways, economic zones, and infrastructure development.
The pact was endorsed during the World Economic Forum in Davos by Shahid Ashraf Tarar, the Minister of Communication, Railways, and Maritime Affairs, and Sultan Ahmed bin Sulayem, Dubai’s Chairman of Ports, Customs, and Free Zone Corporation (PCFC).
As per an official statement from the Ministry of Railways, the collaboration encompasses the establishment of a dedicated freight corridor, a multi-modal logistics park, and freight terminals.
The Dubai Port (DP) World will collaborate on infrastructure development at Qasim International Container Terminal, which serves as Pakistan’s leading trade gateway, and has plans to develop an economic zone near the terminal.
The two governments have inked two inter-governmental framework agreements to enhance ties in the marine and logistics sectors. This includes exploring the possibility of establishing a “Dedicated Freight Corridor” and an “Economic Zone” in the vicinity of Karachi.
DP World will represent the Dubai government, while Pakistan Railways and Port Qasim Authority will act on behalf of the Pakistani government in overseeing the development of the projects.
Also Read: Secretary general OIC lauds COMSTECH’s significant contributions to OIC member states
The rail-based Dedicated Freight Corridor is slated to traverse from Karachi Port on the Arabian Sea, traversing through Pakistan’s most populous city, and extending to the Pipri Marshalling Yard, located approximately 50 km away.
Implementing this plan would alleviate congestion in Karachi, enhance road safety, and lead to substantial improvements in efficiency, transport times, and a reduction in the overall logistics costs.
Pakistan Railways, as the national state-owned railway company, manages and operates an extensive network of nearly 8,000 route-km spanning the country from Peshawar in the northwest to Karachi in the south.
Under this framework agreement, an economic zone is set to be developed at Port Qasim, with the goal of attracting over $3 billion in foreign direct investment.
Ashraf Tarar, speaking at the signing ceremony, expressed, “DP World has a longstanding and proud presence in Pakistan, marked by mutually rewarding engagement. Building upon the unwavering trust and partnership, the two brotherly countries have decided to further strengthen their economic cooperation through landmark projects.”
He emphasized that the signing of investment framework agreements underscores the significance of Pakistan as a gateway to Asia, along with the commercial dividends linked to its strategic location.
“We take pride in contributing to its trading capacity through our operations at Qasim International Container Terminal. We are honored to collaborate with various Pakistani government organizations to develop new freight systems and with Port Qasim Authority to enhance port connectivity and investment,” he concluded, stating that these initiatives will serve Pakistan’s growing population, projected to approach 300 million in the coming decade, and further integrate it into the wider region.
