Pakistan’s Federal Minister for Maritime Affairs, Qaiser Ahmed Sheikh, is set to visit Denmark this month to finalize a significant $2 billion investment agreement with the global shipping giant, AP Moller–Maersk (Maersk).
The deal, which involves a memorandum of understanding (MoU) between Maersk and the Karachi Port Trust (KPT), represents a major boost to Pakistan’s port and transport infrastructure over the next two years.
The upcoming MoU signing follows a visit to Pakistan by Maersk’s Chief Executive Officer, Keith Svendsen, where he met with top officials to explore investment opportunities within the country’s maritime sector. According to a report from state media Radio Pakistan, the investment is expected to significantly contribute to Pakistan’s infrastructure development and overall economic improvement.
Karachi Port Trust and Danish Shipping Giant to boost Pakistan’s Maritime sector
Minister Sheikh highlighted Karachi’s immense potential for exports, emphasizing that the Ministry of Maritime Affairs is working diligently to create a business-friendly environment. Sheikh said that his ministry was providing an enabling environment to the business community, and this investment will further enhance Karachi’s role as a key export hub.
Maersk, a leader in logistics and supply-chain services in Pakistan, already commands around 20% of the market share in the country’s containerized import-export activities. The Danish company’s expansion into Pakistan’s port and transport sectors is seen as a strategic move to enhance its regional operations.
Government-backed Investment and Development
The investment by Maersk is part of a broader initiative facilitated by Pakistan’s Special Investment Facilitation Council (SIFC), which aims to attract foreign investment and promote economic growth. The project will focus on key areas such as port development, terminal operations, dredging, transshipment, and road construction.
In addition to Maersk’s investment, Pakistan has also signed an agreement with the Abu Dhabi Ports Group, which is investing $395 million in the development of a container and cargo terminal under a government-to-government agreement between the UAE and Pakistan.
Legislative support and sectoral growth
To further support the maritime sector, Minister Sheikh announced the elimination of sales tax on processing plants, fisheries seeds, and feed within the maritime industry. The government will also provide land for building processing plants aimed at boosting marine exports.
Sheikh urged the business community to actively participate in the ongoing developments, emphasizing that a secure and stable Pakistan is essential for attracting growth and investment. The SIFC initiative, coupled with Maersk’s significant investment, is expected to bring substantial progress to Pakistan’s maritime and transport sectors, ultimately contributing to national economic development.
The forthcoming MoU between Pakistan’s Karachi Port Trust and Maersk marks a pivotal moment for the country’s maritime industry. With a $2 billion investment on the horizon, supported by government initiatives and international partnerships, Pakistan is poised to strengthen its infrastructure and enhance its role in global trade.