Pakistan, Dubai signal over $3bn funding pact for railway, port growth

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Cooperation covers growth of devoted freight hall, multi-modal logistics park, freight terminals

Caretaker PM Anwaar-ul-Haq Kakar witnesses signing of Inter-Governmental Framework Agreements between Ministries of Communications, Railways and Maritime Affairs of Pakistan and the Dubai authorities represented by DP World on January 18, 2024. — PID
  • Cooperation covers growth work at Qasim Int’l Terminal.
  • Rail freight hall from Karachi Port to Pipri Marshalling Yard.
  • Growth of Port Qasim financial zone to draw $3bn FDI.

Pakistan and Dubai have inked a greater than $three billion funding pact in numerous fields together with cooperation in railways, financial zones, and infrastructure growth.

The settlement was signed on the sidelines of the World Financial Discussion board in Davos by Minister of Communication, Railways, and Maritime Affairs Shahid Ashraf Tarar and Dubai’s Chairman of Ports, Customs and Free Zone Company (PCFC) Sultan Ahmed bin Sulayem.

The cooperation coated the event of a devoted freight hall, multi-modal logistics park, and freight terminals, the Ministry of Railways stated in an official assertion.

The Dubai Port (DP) World will work on infrastructure growth at Qasim Worldwide Container Terminal which is Pakistan’s main commerce gateway and plans to develop an financial zone close to the terminal.

Each governments have signed two inter-governmental framework agreements to strengthen their relations within the marine and logistics sectors, together with the potential institution of a “Devoted Freight Hall” and “Financial Zone” close to Karachi.

The DP World will act on behalf of the Dubai authorities, whereas Pakistan Railways and Port Qasim Authority will act on behalf of the Pakistani authorities, for the event of the initiatives.

The rail-based Devoted Freight Hall is deliberate to run from Karachi Port on the Arabian Sea, passing via Pakistan’s most populous metropolis, to the Pipri Marshalling Yard, roughly 50 km away.

This could decongest Karachi in addition to bettering highway security. It can considerably enhance effectivity, and transport instances and scale back the general value of logistics.

Pakistan Railways is the nationwide, state-owned railway firm, proudly owning and working practically 8,000 route-km of railway throughout the nation, from Peshawar within the northwest to Karachi within the south.

The Qasim Worldwide Container Terminal, a second framework settlement was signed with Pakistan’s Ministry of Maritime Affairs to dredge the navigation channel.

The DP World would perform the capital dredging on behalf of the Dubai authorities.

This framework settlement will even see the event of an financial zone at Port Qasim, which goals to draw greater than $three billion of international direct funding.

The DP World will perform the event of the financial zone, to maximise financial exercise in Pakistan.

Talking on the signing ceremony, Ashraf stated: “The DP World has a long-standing proud presence in Pakistan witnessed by mutually rewarding engagement. Constructing on the unwavering belief and partnership, the 2 brotherly international locations have determined to additional consolidate their financial cooperation via landmark initiatives.”

He added that the signing of funding framework agreements highlights the significance of Pakistan as a gateway to Asia and business dividends related to its strategic location.

Sulayem, in the meantime, stated that Pakistan is a rising market and an necessary commerce hall to Central Asia.

“We’re proud to have contributed to its buying and selling means via our operations at Qasim Worldwide Container Terminal and are honored to work with numerous Pakistani authorities organisations to develop new freight techniques and with Port Qasim Authority to reinforce port connectivity and funding.”

“These will assist serve Pakistan’s rising inhabitants, forecast to strategy 300 million within the coming decade, and combine it additional into the broader area,” he concluded.

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