Dubai and Pakistan Collaborate on Railways and Economic Zones

The government of Dubai and the Islamic Republic of Pakistan have signed two framework agreements to enhance their relations in the maritime and logistics sectors, including the possibility of creating a dedicated shipping corridor and an economic zone near the city of Karachi.

The two agreements were signed during the activities of the World Economic Forum in Davos, Switzerland, by His Excellency Shahid Ashraf Tarar, Federal Minister for Communications, Railways, and Maritime Affairs of the Islamic Republic of Pakistan, and Sultan Ahmed Bin Sulayem, Chairman of the Ports, Customs and Free Zone Corporation, under the Government of Dubai.

Dubai World Ports Group, representing the government of Dubai, will work alongside the Pakistan Railways and Port Qasim on behalf of the government of Pakistan to develop the projects.

It is expected that the dedicated cargo corridor from the port of Karachi on the Arabian Sea, passing through Karachi, the most populous city in Pakistan, to the PIBT station, approximately 45 kilometers away, will lead to improved efficiency and transportation time, as well as reduce the overall cost of logistics services.

The headquarters of the Pakistani Railways is located in Lahore. It is the state-owned national railway company and owns and operates approximately 8000 kilometers of railways across the country from Torkham in the northwest to Karachi in the south.

A second framework agreement has been signed with the Pakistani Ministry of Maritime Affairs for the digging of the shipping channel. Dubai World Ports Group will undertake the dredging operations on behalf of the Dubai government to create the navigation channels.

This framework agreement includes the development of an economic zone in Port Qasim, aiming to attract over 3 billion US dollars of foreign direct investment.
Dubai World Ports Group, on behalf of the Dubai government, will be responsible for developing the economic zone with the aim of enhancing economic activity in Pakistan.

Dubai World Ports Group began its operations in Pakistan in 1997 at the Qasim International Container Terminal, which was the country’s first of its kind.

Sultan Ahmed bin Sulayem, Chairman of the Board of Directors of the Ports, Customs and Free Zone Corporation and Chairman and CEO of DP World, said, “Pakistan is a growing market and an important trade corridor to Central Asia.

We are proud to contribute to enhancing its trade capabilities through our operations at the Qasim International Container Terminal. We are honored to work with various Pakistani government institutions to develop new shipping systems, and with the Qasim Port Authority to improve port connectivity and attract investment.

These efforts will help serve the population in Pakistan, which is expected to reach nearly 300 million people in the next decade, and integrate them further into the region.”

On his part, His Excellency Shahid Ashraf Tarar, the Federal Minister for Communications, Railways, and Maritime Affairs in Pakistan, stated that “Dubai World Ports Group has a long-standing presence in Pakistan, which reflects the excellent relationship.

Based on the high trust and partnership between the two parties, they have decided to continue enhancing economic cooperation through major projects.”

He indicated that the two investment framework agreements highlight Pakistan’s importance as a gateway to Asia and the unique trade advantages associated with its strategic location.

(wam)