Governments of Pakistan and Dubai ink more than $3 Billion investment pact
Chitral Times Report
ISLAMABAD: Federal Minister for Communication, Railways and Maritime Affairs Mr. Shahid Ashraf Tarar, and Sultan Ahmed bin Sulayem, Chairman of Ports, Customs and Free Zone Corporation (PCFC), Government of Dubai signed two Inter-Governmental Framework Agreements on cooperation in railways, economic zones and infrastructure. Agreement signed at the World Economic Forum in Davos covers cooperation in 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 to strengthen bilateral relations in the marine and logistics sectors. It will be inclusive of potential establishment of a Dedicated Freight Corridor and Economic Zone near Karachi.
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 these projects. 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 reduce traffic congestion in Karachi improving road efficiency and transport times while drastically reducing logistic costs. 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, Mr. Shahid Ashraf Tarar said: “DP World has longstanding 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”. On the other hand, Sultan Ahmed bin Sulayem stated: “Pakistan is a growing market, and an important trade corridor to Central Asia…”
