PAKISTAN AND DUBAI TO COOPERATE ON ECONOMIC ZONES & INFRASTRUCTURE IMPROVEMENT
Cooperation covers development of a multi-modal logistics park, and freight terminals
Agreement signed at the World Economic Forum in Davos between Islamic Republic of Pakistan Government on 17th January, 2024.
18th January, 2024: The governments of the Islamic Republic of Pakistan and Dubai signed an Inter-Governmental Framework Agreement to strengthen their relations in the marine and logistics sectors, including the potential establishment of a Dedicated Freight Corridor and Economic Zone near Karachi.
The agreement was signed at the World Economic Forum in Davos, Switzerland, by H.E. Shahid Ashraf Tarar, Federal Minister of Communications, Railways and Maritime Affairs, Islamic Republic of Pakistan, and H.E. Sultan Ahmed bin Sulayem, Chairman of Ports, Customs and Free Zone Corporation (PCFC), Government of Dubai.
DP World will act as a nominated entity of the Dubai Government, while Port Qasim Authority will act on behalf of the Pakistan Government for the development of the projects. The Agreement signed with Pakistan’s Ministry of Maritime Affairs proposes to dredge the navigation channel.
This 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 maximizing economic activity in Pakistan.
Port Qasim started operation in 1980. The port presently has 18 berths (15 in private sector) with annual handling capacity of 89 millions tons. All commodities ranging from minerals oils, edible oil, coal, rice, wheat, cement to fertilizers, general cargo, containers and LNG are being handled in the port at state-of-the-art terminals. It is the energy hub and only LNG Port of Pakistan. Port Qasim has largest the industrial zone of Pakistan spread over 15474 acres. Port Qasim connects directly to the national highway, motorway and railways network leading to Afghanistan, CARs and the CPEC Routes.
Speaking at the signing ceremony, H.E Sultan Ahmed bin Sulayem, Chairman of PCFC and Group Chairman and CEO of DP World, said: “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 organizations to develop new freight systems and with Port Qasim Authority to enhance port connectivity and investment. These will help serve Pakistan’s growing population, forecast to approach 300 million in the coming decade, and integrate it further into the wider region”.
H.E. Shahid Ashraf Tarar, Federal Minister of Communication, Railways and Maritime Affairs, said: “DP World has 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 Investment Framework Agreements highlights the importance of Pakistan as gateway to Asia and commercial dividends associated with its strategic locations”.