At the World industrial Forum (WEF) in Davos, Switzerland, the governments of Pakistan and Dubai signed a more than $3 billion investment agreement to cooperate in railways, industrial zones, and infrastructure.
According to a press release issued on Thursday, 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.
On January 17, 2024, during the World Economic Forum in Davos, Switzerland, significant agreements were inked between the governments of Pakistan and Dubai. The Federal Minister of Communication, Railways, and Maritime Affairs of Pakistan, Shahid Ashraf Tarar, and Sultan Ahmed bin Sulayem, Chairman of Ports, Customs, and Free Zone Corporation (PCFC) in Dubai, played pivotal roles in the signing.
The agreements involve Dubai’s DP World representing the Government of Dubai and collaborating with Pakistan Railways and Port Qasim Authority on behalf of the Pakistan Government for various development projects.
One major project is the establishment of a rail-based dedicated freight corridor from Karachi Port to the Pipri Marshalling Yard, aiming to reduce congestion in Karachi, enhance road safety, and improve overall logistics efficiency.
Another agreement focuses on dredging a navigation channel, with DP World undertaking capital dredging on behalf of the Government of Dubai. This partnership also includes the development of an economic zone at Port Qasim, with aspirations to attract over $3 billion in foreign direct investment.
The signing of Investment Framework Agreements underscores Pakistan’s strategic importance as a gateway to Asia, emphasizing the commercial benefits of its location. Sultan Ahmed bin Sulayem acknowledged Pakistan’s growth as a vital trade corridor to Central Asia, expressing pride in DP World’s contributions to enhancing port connectivity and investment in the region.
Additionally, on the sidelines of the World Economic Forum, DP World signed a Memorandum of Understanding (MoU) with JW Holdings, a Pakistani conglomerate, to explore opportunities for new Special Economic Zones (SEZs) and logistics development in Pakistan. This collaborative effort highlights the commitment to further economic growth and trade facilitation between the two nations.
