Islamabad, Copenhagen discuss $2 billion investment to modernize Pakistan’s maritime sector

Pakistani Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry (left) present souvenir to Danish Ambassador Jacob Linulf during their meeting on March 12, 2025. (PID)
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Updated 13 March 2025
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Islamabad, Copenhagen discuss $2 billion investment to modernize Pakistan’s maritime sector

  • Pakistan, Denmark signed MoU in October 2024, paving the way for Maersk to invest $2 billion in Pakistan’s maritime sector
  • Maritime affairs minister says Danish expertise can contribute to Pakistan’s economic growth, trade competitiveness

ISLAMABD: Pakistani and Danish officials this week discussed Denmark’s $2 billion investment to modernize the South Asian country’s maritime affairs infrastructure, Pakistan’s maritime affairs ministry said, as the two sides explored further avenues for bilateral collaboration.

Pakistan and Denmark last October signed a $2 billion memorandum of understanding (MoU) according to which Danish global shipping giant AP Moller–Maersk (Maersk) will invest the amount to modernize Pakistan’s maritime infrastructure and enhance its ports’ efficiency.

Pakistani Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry and Danish Ambassador Jacob Linulf met on Wednesday to review the progress of the $2 billion investment, the maritime affairs ministry said. 

“The minister emphasized the strategic importance of this partnership, highlighting how Danish expertise in maritime technology can contribute to Pakistan’s economic growth and global trade competitiveness,” the statement said. 

The ministry said that their discussion also covered potential future investments in green shipping, renewable energy solutions for ports and capacity-building initiatives to strengthen Pakistan’s maritime workforce. 

“Both dignitaries reaffirmed their commitment to fostering a long-term, mutually beneficial relationship between the two countries,” the statement added. 

The meeting also focused on strengthening cultural ties and promoting tourism between Pakistan and Denmark, with both sides reaffirming their desire to enhance people-to-people exchanges. 

Linulf expressed Denmark’s interest in expanding its footprint in Pakistan’s maritime sector, the ministry said, reiterating his government’s commitment to supporting sustainable and innovative solutions. 

“The meeting concluded on a positive note, with both sides agreeing to accelerate the implementation of the MoU and explore further opportunities for collaboration in trade, investment, and cultural exchange,” the ministry said. 


Pakistan remittances seen surpassing $40 billion in FY26 as Saudi Arabia leads November inflows

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Pakistan remittances seen surpassing $40 billion in FY26 as Saudi Arabia leads November inflows

  • The country’s November remittances rose 9.4 percent year-on-year to $3.2 billion, official data show
  • Economic experts say rupee stability and higher use of formal channels are driving the upward trend

ISLAMABAD: Pakistan’s workers’ remittances are expected to exceed the $40 billion mark in the current fiscal year, economic experts said Tuesday, after the country recorded an inflow of $3.2 billion in November, with Saudi Arabia once again emerging as the biggest contributor.

Remittances are a key pillar of Pakistan’s external finances, providing hard currency that supports household consumption, helps narrow the current-account gap and bolsters foreign-exchange reserves. The steady pipeline from Gulf economies, led by Saudi Arabia and the United Arab Emirates, has remained crucial for Pakistan’s balance of payments.

A government statement said monthly remittances in November stood at $3.2 billion, reflecting a 9.4 percent year-on-year increase.

“The growth in remittances means the full-year figure is expected to cross the $40 billion target in fiscal year 2026,” Sana Tawfik, head of research at Arif Habib Limited, told Arab News over the phone.

“There are a couple of factors behind the rise in remittances,” she said. “One of them is the stability of the rupee. In addition, the country is receiving more inflows through formal channels.”

Tawfik said the trend was positive for the current account and expected inflows to remain strong in the second half of the fiscal year, noting that both Muslim festivals of Eid fall in that period, when overseas Pakistanis traditionally send additional money home for family expenses and celebrations.

The official statement said cumulative remittances reached $16.1 billion during July–November, up 9.3 percent from $14.8 billion in the same period last year.

It added that November inflows were mainly sourced from Saudi Arabia ($753 million), the United Arab Emirates ($675 million), the United Kingdom ($481.1 million) and the United States ($277.1 million).

“UAE remittances have regained momentum in recent months, with their share at 21 percent in November 2025 from a low of 18 percent in FY24,” said Muhammad Waqas Ghani, head of research at JS Global Capital Limited. “Dubai in particular has seen a steady pick-up, reflecting improved inflows from Pakistani expatriates owing to some relaxation in emigration policies.”