The governments of Dubai and the Islamic Republic of Pakistan have signed two Inter-Governmental Framework Agreements to strengthen their relations in the marine and logistics sectors, including the potential establishment of a Dedicated Freight Corridor and Economic Zone near Karachi. DP World will act on behalf of the Dubai Government, while state-run Pakistan Railways and Port Qasim Authority will act on behalf of the Pakistan Government, for the development of the projects.
One of the agreements covers the new Dedicated Freight Corridor, which is planned to run from the port of Karachi to the Pipri Marshalling Yard approximately 45km away, while a second framework agreement was signed with Pakistan’s Ministry of Maritime Affairs to dredge the navigation channel at Port Qasim, with DP World carrying out the necessary capital works.
A further framework agreement will also see the development of an economic zone at Port Qasim, which aims to attract more than US $3 billion of foreign direct investment. DP World will carry out the development of the economic zone, with the aim of maximising economic activity in Pakistan.