WHAT DINA THINKS: Pak-Dubai Partnership WITH $3 Billion Investments

Hello expats and happy friday! 

Today we'll get into bilateral investments... between Pakistan and UAE. 

Pakistan and UAE have maintained strong bilateral relationships since DAY 1! Real ones know that. Recently, the governments of Pakistan and Dubai have inked investment agreements exceeding $3 billion, unveiling a new chapter in their collaboration across railways, economic zones, and infrastructure. This historic agreement was formalized at the World Economic Forum in Davos and it underscores their dedication to transformative projects poised to elevate trade, connectivity, and economic activity in the region.

The collaboration has a range of initiatives, including the creation of a dedicated freight corridor, a multi-modal logistics park, and state-of-the-art freight terminals. DP World, representing the Dubai government, will play a pivotal role in enhancing infrastructure at Pakistan's primary trade gateway, the Qasim International Container Terminal. Additionally, plans are underway to establish an economic zone nearby, aiming to catalyze foreign direct investment in Pakistan. 

The signing ceremony held on January 17, 2024 at Davos in Switzerland, featured the Federal Minister of Communication, Railways, and Maritime Affairs, Shahid Ashraf Tarar, and Sultan Ahmed bin Sulayem, Chairman of Ports, Customs, and Free Zone Corporation (PCFC), representing the government of Dubai. The signing marked the establishment of two Inter-Governmental Framework Agreements, solidifying DP World's collaboration with Pakistan Railways and Port Qasim Authority for project execution.

One initiative that I think is the most important is the development of a rail-based Dedicated Freight Corridor, stretching from Karachi Port on the Arabian Sea through the bustling metropolis of Karachi to the Pipri Marshalling Yard, approximately 50 kilometers away. This corridor aims to alleviate congestion, enhance road safety, and significantly improve logistical efficiency, transport times, and overall logistics costs. Have you noticed that more South Asian countries lately are having easier access to nearby regions? Cool! 

The second framework agreement, signed with Pakistan’s Ministry of Maritime Affairs, outlines DP World’s role in capital dredging, which I believe is a critical component for the development of an economic zone at Port Qasim. This economic zone, set to attract over $3 billion in foreign direct investment, will be developed by DP World on behalf of the Government of Dubai, strategically focusing on maximizing economic activity in Pakistan.

During the ceremony, Minister Tarar emphasized the enduring trust and partnership between the two nations, highlighting Pakistan's economic significance as the gateway to Asia. He stated, "The signing of these Investment Framework Agreements highlights the importance of Pakistan as a gateway to Asia and the commercial dividends associated with its strategic location."

Sulayem, Chairman of PCFC and Group Chairman and CEO of DP World, echoed the sentiment, recognizing Pakistan as a growing market and a crucial trade corridor to Central Asia. He remarked, "We are proud to have contributed to its trading ability through our operations at Qasim International Container Terminal and are honored to work with various Pakistani government organizations to develop new freight systems and with Port Qasim Authority to enhance port connectivity and investment.