Pakistan and Dubai seal historic $3 billion deal in Davos

Islamabad, 20 January, 2024 (TDF): In a significant move to strengthen bilateral relations, Pakistan and Dubai have signed two inter-governmental framework agreements worth over $3 billion. The signing ceremony occurred on Thursday during the World Economic Forum in Davos.

Shahid Ashraf Tarar, Pakistan’s Federal Minister for Communication, Railways, and Maritime Affairs, and Sultan Ahmed bin Sulayem, Chairman of Ports, Customs, and Free Zone Corporation (PCFC) representing the government of Dubai, signed the agreements.

The signing was witnessed by Caretaker Prime Minister Anwaarul Haq Kakar, with Sultan Ahmed bin Sulayem also serving as the Group Chairman and CEO of DP World, a leading multinational logistics company based in the UAE.

Key Agreement: Rail-Based Dedicated Freight Corridor (DFC)

One key agreement focuses on the development of a rail-based dedicated freight corridor (DFC) from Karachi Port on the Arabian Sea to the Pipri Marshalling Yard. This corridor aims to reduce traffic congestion in Karachi, improve road efficiency, and lower logistic costs significantly.

At #WEF24: Dubai and Pakistan signed an agreement to cooperate on rail, economic zones and infrastructure improvement. We are proud to collaborate in our shared ambitions of boosting Pakistan's trade potential: https://t.co/esb0m5lJPH#MadePossible @ssulayem pic.twitter.com/ZRkcKlywBl

— DP World (@DP_World) January 18, 2024

PM Kakar expressed satisfaction with the growing exchanges and cooperation between businesses in Pakistan and the UAE, highlighting their transformative potential. He welcomed DP World’s interest in expanding its business in Pakistan and assured the company of the Pakistani government’s continued support.

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Comprehensive economic development agreements

The agreements encompass various aspects, including the development of a dedicated freight corridor, multi-modal logistics park, and freight terminals.

DP World will undertake infrastructure improvements at Port Qasim International Container Terminal and develop an economic zone near the terminal.

Another agreement involves dredging the navigation channel and developing an economic zone at Port Qasim, aiming to attract over $3 billion in foreign direct investment.

Longstanding presence and economic cooperation

Shahid Tarar highlighted DP World’s longstanding presence in Pakistan and emphasized the importance of consolidating economic cooperation through these landmark projects.

Sultan Ahmed bin Sulayem, DP World CEO, expressed pride in contributing to Pakistan’s trading capabilities and reaffirmed the commitment to enhancing port connectivity and investment.

These agreements underscore the growing economic ties between Pakistan and Dubai, positioning Pakistan as a gateway to Asia and emphasizing Dubai’s recognition of Pakistan as a crucial trade corridor to Central Asia