By Staff Reporter
ISLAMABAD: Pakistan and Dubai signed two framework agreements on Thursday worth over $3 billion to cooperate in railways, ports, and economic zones, aiming to boost trade and investment between the two countries.
The agreements, signed at the World Economic Forum in Davos, Switzerland, involve the development of a rail-based dedicated freight corridor (DFC) from Karachi Port to the Pipri Marshalling Yard, and the dredging of the navigation channel and the establishment of an economic zone at Port Qasim.
The projects will be carried out by Dubai-based DP World, a multinational logistics company, which will act on behalf of the Dubai government, while Pakistan Railways and Port Qasim Authority will represent the Pakistan government.
The DFC, which will run for about 50 kilometers, will reduce traffic congestion in Karachi, improve road efficiency and transport time, and lower logistic costs, according to an official press release.
The economic zone, which will be developed near the Port Qasim International Container Terminal, is expected to attract more than $3 billion of foreign direct investment and enhance economic activities in Pakistan.
The agreements were signed by Minister for Communication, Railways and Maritime Affairs Shahid Ashraf Tarar and Sultan Ahmed bin Sulayem, chairman of Ports, Customs and Free Zone Corporation (PCFC), government of Dubai.
Caretaker Prime Minister Anwaarul Haq Kakar witnessed the signing ceremony after meeting with bin Sulayem, who is also the group chairman and CEO of DP World.
Kakar expressed satisfaction over the growth of exchanges, interaction and cooperation between businesses in Pakistan and the United Arab Emirates and highlighted their transformative potential.
He welcomed DP World’s interest in expanding its business in Pakistan and assured the company of the Pakistan government’s continued support.
“Pakistan will continue to facilitate partner enterprises to realize its geo-economic vision as a hub of commerce and industry,” the PM said.
Bin Sulayem said Pakistan is a growing market and an important trade corridor to Central Asia.
He said DP World is proud to have contributed to its trading ability through its operations at Qasim International Container Terminal and is honored to work with various Pakistani government organizations to develop new freight system and with Port Qasim Authority to enhance port connectivity and investment.
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