Denmark to invest $2 billion in Pakistan’s port development

KARACHI: The Federal Cabinet has approved a significant investment plan from Denmark, amounting to $2 billion, for the development of Pakistani ports.

Federal Minister for Maritime Affairs, Syed Qaiser Ahmad Sheikh, informed journalists that Denmark is ready to invest heavily in the development of Pakistani ports.

A memorandum of understanding (MoU) between the two countries will be signed later this month, with the Minister for Port and Shipping set to visit Denmark for this purpose. The Federal Cabinet has given its approval for the government-to-government MoU.

Sheikh revealed that the MoU will be between the world’s largest shipping line, Maersk, and the Karachi Port Trust (KPT). Over the next two years, Maersk will invest $2 billion in Pakistan.

This investment will focus on enhancing port infrastructure, terminal development, dredging, transshipment, and road construction. Additionally, Maersk will be involved in the construction of large warehouses and shipbreaking activities in Pakistan.

The Minister also mentioned a proposal to include Pakistan National Shipping Corporation (PNSC) in the privatisation list, noting that PNSC is not a strategic entity and has the potential to earn significantly more than it currently does.

On the same occasion, CFO of PNSC, Jarrar Haider Kazmi, stated that PNSC’s profit for the current year is expected to be around PKR 20 billion. Last year, PNSC’s revenue exceeded PKR 30 billion, driven by the sale of ships, high dollar rates, and increased freight rates.

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