The governments of Dubai and the Islamic Republic of Pakistan have signed two intergovernmental framework agreements to strengthen their relations in the maritime and logistics sectors, including the possible establishment of an exclusive cargo corridor and economic zone near Karachi.
The agreements were signed at the World Economic Forum in Davos, Switzerland, by Shahid Ashraf Tarar, Federal Minister of Communications, Railways and Maritime Affairs of the Islamic Republic of Pakistan, and Sultan Ahmed bin Sulayem, Chairman of the Corporation of Ports, Customs and Free Zones (PCFC), Government of Dubai.
DP World will act on behalf of the Dubai Governmentwhile the state authority of Pakistan Railways and Port Qasim will act on behalf of the Government of Pakistanfor the development of projects.
The dedicated cargo corridor is planned to extend from the port of Karachi on the Arabian Sea, through Karachi, Pakistan’s most populous city, to Pipri Marshalling Yard, approximately 45 km away. This will improve efficiency and transportation times, and reduce the overall cost of logistics.
Based in Lahore, Pakistan Railways is Pakistan’s state railway company, owning and operating almost 8,000 kilometers of railways across the country, from Torkham in the northwest to Karachi in the south.
A second framework agreement was signed with Pakistan Ministry of Maritime Affairs to dredge the navigation channel. DP World will carry out the capital dredging on behalf of the Government of Dubai.
This framework agreement will also contemplate the development of an economic zone in Port Qasim, which aims to attract more than $3 billion in foreign direct investment. dp world, On behalf of the Dubai Governmentwill carry out the development of the economic zone, with the objective of maximizing economic activity in Pakistan.
DP World It began operations in Pakistan in 1997 at the Qasim International Container Terminal (QICT), the first of its kind in the country, and has since transformed the facility into a leading gateway for global trade in the region.
Speaking at the signing ceremony, Sultan Ahmed bin Sulayem, Chairman of PCFC and Group Chairman and CEO of DP Worldsaying,
“Pakistan is a growing market and an important trade corridor to Central Asia. We are proud to have contributed to their trading capacity through our operations at the Qasim International Container Terminal and are honored to work with various Pakistani government organizations to develop new cargo systems and with the Qasim Port Authority to improve connectivity. and port investment. “These will help serve Pakistan’s growing population, expected to approach 300 million in the next decade, and further integrate it into the broader region.”
Shahid Ashraf Tarar, Federal Minister of Communications, Railways and Maritime Affairs, saying,
“DP World has a proud, long-standing presence in Pakistan, witnessed by a mutually rewarding commitment. Leveraging unbreakable trust and partnership, the two brotherly countries have decided to further consolidate economic cooperation through flagship projects. The signing of Investment Framework Agreements highlights the importance of Pakistan as a gateway to Asia and the trade dividends associated with its strategic location.”
News source: Emirates News Agency