Pakistan Welcomes $2 Billion Investment from Maersk to Boost Maritime Sector
Pakistan has welcomed a $2 billion investment from the global shipping giant Maersk. On Tuesday, Pakistan Prime Minister Shehbaz Sharif met with Robert Maersk, Chairman of the A.P Moller-Maersk board, who was on a business tour in the country. Sharif hailed the investment as a significant boost to Pakistan’s maritime sector.
Maersk initially announced the investment last year in October, during the signing of a Memorandum of Understanding (MoU) between Denmark and Pakistan on maritime development. At the time, the MoU was signed by Danish Minister for Industry and Business Morten Bodskov and Pakistani Minister for Maritime Affairs Qaisser Ahmed Shaikh.
Prime Minister Sharif has directed Pakistani authorities to fast-track the conversion of the MoU into a formal agreement. He also directed the formation of a technical working group to accelerate drafting a maritime collaboration agreement with Maersk, with recommendations to be presented within a month.
“Pakistan has a crucial role as an economic corridor for trade with Central Asia, a key factor for our company. Maersk is committed to modernizing Pakistan’s port logistics and equipping them with advanced technology to establish a major maritime trade hub in the region,” said Robert Maersk.
Maersk also emphasized that his company has a long history in the region, with the first Maersk ship arriving in Pakistan in 1924. Maersk is reportedly exploring options of developing a deep-water container terminal, with a focus on Karachi and Port Qasim.
The investment from Maersk coincides with reforms in Pakistan’s port sector announced by the Prime Minister’s Office on Monday. A maritime taskforce is already in place tasked with the responsibility of reviving Pakistan’s maritime economy. Some of the recommendations by the taskforce include setting up a National Dredging Company, which will oversee dredging of all ports in the country. In addition, a plan of action has been prepared for the rehabilitation and reconstruction of the Pakistan National Shipping Corporation (PNSC) through a public-private partnership for the next 25 years.
“The pace of installing the latest scanners at all ports should be accelerated. Trade tariffs should be reviewed to bring the country’s ports to a competitive standard,” Sharif said in a meeting with the taskforce.
Top image: Port Qasim, Pakistan (Sana Sneha / CC BY SA 4.0)