Maersk Sees Pakistan As Key Economic Corridor, Commits $2 Billion Investment

Pakistan has secured a $2 billion investment from one of the world’s leading shipping companies, AP Moller Maersk.

The announcement was made during a meeting in Islamabad between Prime Minister Shehbaz Sharif and Maersk’s Board Chairman, Robert Maersk, who visited Pakistan for business discussions.

The Prime Minister welcomed the investment and called it a big step forward toward improving the country’s trade infrastructure. He instructed relevant departments to swiftly convert the earlier MOU signed with Maersk into formal agreements.

A technical working group has also been formed to draft a maritime collaboration agreement with the company, with a timeline of one month to submit its recommendations.

Sharif discussed the urgent need to enhance the competitiveness of Pakistan’s ports and remove all delays in maritime sector development.

He pointed out that Pakistan’s location as a trade and transit corridor, especially for Central Asian countries, gives it a unique advantage that must be fully utilised.

The $2 billion investment was initially announced in October last year during the signing of an MOU on maritime development between Denmark and Pakistan.

The agreement was signed by Danish Minister for Industry and Business Morten Bodskov and Pakistan’s Minister for Maritime Affairs Qaiser Ahmed Shaikh.

During his visit, Robert Maersk shared his company’s long-standing connection with Pakistan, dating back to 1924 when the first Maersk ship arrived in the region. He noted that today the relationship with Pakistan is stronger than ever.

According to Maersk leadership, Pakistan’s strategic position as an economic corridor for Central Asia is of high importance, and the company is committed to upgrading port logistics and bringing in advanced technology.

Maersk is also planning to develop a deep-water container terminal in key ports like Karachi and Port Qasim.

The company believes Pakistan has great potential to become a central maritime trade hub in the region.

The Pakistani government has also established a maritime task force to revive the maritime economy. This taskforce has proposed the creation of a National Dredging Company to handle dredging operations across all ports in the country.

Additionally, a 25 year roadmap has been outlined for the rehabilitation and reconstruction of the Pakistan National Shipping Corporation (PNSC) though a public-private partnership model.

In a meeting with the task force, Prime Minister Sharif discussed the need to speed up the installation of modern scanning equipment at all ports.

He directed a review of trade tariffs to ensure the country’s ports can compete with others globally.

During the discussions, Robert Maersk acknowledged the positive direction of Pakistan’s economic policies and stated that the investment environment in the country is encouraging.

He mentioned that many of Maersk’s international clients are showing interest in exploring investment and business opportunities in Pakistan as well.

Reference: Pak radio

Source: Maritime Shipping News