Pakistan, Dubai ink $3b investment pact at Davos

The governments of Pakistan and Dubai have signed investment agreements exceeding $3 billion, marking a pivotal moment in their cooperation across railways, economic zones, and infrastructure. The landmark agreement, signed at the World Economic Forum in Davos, solidifies their commitment to transformative projects that promise to elevate trade, connectivity, and economic activity in the region.

The comprehensive cooperation includes the development of a dedicated freight corridor, a multi-modal logistics park, and cutting-edge freight terminals. Among the key projects, DP World, acting on behalf of the Dubai government, is set to enhance infrastructure at Qasim International Container Terminal, Pakistan’s primary trade gateway. Additionally, plans are underway to establish an economic zone near the terminal, further catalysing foreign direct investment in the country.

The signing ceremony, held on January 17, 2024, at Davos, saw Federal Minister of Communication, Railways, and Maritime Affairs Shahid Ashraf Tarar, and Chairman of Ports, Customs, and Free Zone Corporation (PCFC), representing the government of Dubai, Sultan Ahmed bin Sulayem, putting pen to paper on two Inter-Governmental Framework Agreements. DP World will collaborate with Pakistan Railways and Port Qasim Authority for the successful execution of these projects.

One of the standout initiatives is the creation of a rail-based Dedicated Freight Corridor, charting a course from Karachi Port on the Arabian Sea through Karachi, Pakistan’s bustling metropolis, to the Pipri Marshalling Yard, approximately 50 kilometres away. This corridor aims to alleviate congestion in Karachi, enhance road safety, and bring about a substantial improvement in logistical efficiency, transport times, and overall logistics costs.

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The second framework agreement, signed with Pakistan’s Ministry of Maritime Affairs, outlines DP World’s role in capital dredging, a crucial component for the development of an economic zone at Port Qasim. This economic zone, with ambitions to attract over $3 billion in foreign direct investment, is set to be developed by DP World on behalf of the Government of Dubai, with a strategic focus on maximising economic activity in Pakistan.

Speaking at the ceremony, Tarar highlighted the enduring trust and partnership between the two nations, highlighting the economic significance of Pakistan as the gateway to Asia. “DP World has a 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 these Investment Framework Agreements highlights the importance of Pakistan as a gateway to Asia and commercial dividends associated with its strategic location.”

Chairman of PCFC and Group Chairman and CEO of DP World, echoed the sentiment, reiterating Pakistan’s role as a burgeoning market and a vital trade corridor to Central Asia. “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 organisations to develop new freight systems and with Port Qasim Authority to enhance port connectivity and investment,” said Sulayem.

Published in The Express Tribune, January 19^th, 2024.

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