Pakistan and Dubai have sealed a substantial $3-billion investment pact focused on collaboration in railways, economic zones, and infrastructure during the World Economic Forum (WEF) in Davos, Switzerland.
Two Inter-Governmental Framework Agreements were inked to bolster relations in the marine and logistics sectors, with potential plans for a dedicated freight corridor and economic zone near Karachi. The agreements, signed on January 17, 2024, involved Shahid Ashraf Tarar, Federal Minister of Communication, Railways, and Maritime Affairs for Pakistan, and Sultan Ahmed bin Sulayem, Chairman of Ports, Customs, and Free Zone Corporation (PCFC) for the Government of Dubai.
Dubai’s state-owned port company, DP World, will represent the Government of Dubai, while Pakistan Railways and Port Qasim Authority will represent the Pakistan Government for project development. The first agreement outlines a rail-based dedicated freight corridor from Karachi Port to the Pipri Marshalling Yard, aiming to alleviate congestion in Karachi, enhance road safety, and improve overall logistics efficiency.
The second framework agreement, in collaboration with Pakistan’s Ministry of Maritime Affairs, involves dredging a navigation channel. DP World will conduct capital dredging on behalf of the Government of Dubai, with plans to establish an economic zone at Port Qasim attracting over $3 billion in foreign direct investment.
Shahid Ashraf Tarar emphasized the significance of Pakistan as a gateway to Asia, highlighting the strategic location’s commercial benefits. Sultan Ahmed bin Sulayem acknowledged Pakistan’s growing market and its role as a vital trade corridor to Central Asia. He expressed pride in contributing to Pakistan’s trading capabilities through operations at Qasim International Container Terminal and pledged to collaborate with Pakistani government organizations to develop new freight systems and enhance port connectivity and investment.
In addition to these agreements, DP World signed a Memorandum of Understanding (MoU) with JW Holdings, a Pakistani conglomerate, during the WEF, exploring opportunities for new Special Economic Zones (SEZs) and logistics development in Pakistan.
