Pakistan eyes Chinese investment for desalination plants in Karachi

The handout photograph shows Chinese delegation meets Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry (fourth right) in Islamabad, Pakistan, on April 15, 2025. (PID)
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Updated 15 April 2025
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Pakistan eyes Chinese investment for desalination plants in Karachi

  • Six-member delegation of Chinese construction company meets Pakistan’s maritime affairs minister
  • Chinese company says committed to bringing advanced technologies and investment to Pakistan

ISLAMABAD: A Chinese construction company has expressed interest in installing desalination plants at Pakistan’s Port Qasim to convert seawater into drinking water, the maritime affairs ministry said on Tuesday, amid Islamabad’s efforts to resolve its water crisis. 

Pakistan has the fourth-highest rate of water consumption in the world. The country’s agriculture sector uses the most amount of freshwater than any other sector. Rainfall has steadily declined over the past few decades and experts have been warning for years the country will approach “absolute scarcity” of water by 2025.

The Chinese delegation met Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry in Islamabad to discuss joint investment between the two countries. 

“One of the key topics discussed during the meeting was the installation of desalination plants at Port Qasim,” the ministry said in a statement. 

“The Chinese delegation expressed strong interest in investing in facilities to convert seawater into potable water, an initiative that would address both industrial and domestic water needs.”

Chaudhry highlighted that the desalination plants would supply drinking water and support small industrial operations around the port.

He added that these proposals were a step toward resolving regional water issues that aligned with Pakistan’s climate resilience and environmental sustainability objectives.

“Pakistan’s maritime sector offers promising opportunities for foreign investment, particularly in areas such as port development, logistics, maritime tourism and blue economy ventures,” the ministry quoted Chaudhry as saying.

He encouraged the delegation to explore investment in maritime tourism, part of Pakistan’s economic diversification plan and also invited them to upcoming forums showcasing the country’s potential as a regional maritime hub.

The ministry added the delegation was ready to carry out feasibility studies and collaborate with local stakeholders to launch the project “promptly and effectively.”

“We see tremendous potential in contributing to Pakistan’s sustainable infrastructure goals,” the ministry quoted Wang Yaodong, the head of the Chinese delegation, as saying. 

“Our company is committed to bringing advanced technologies and investment that can help improve living standards and support economic development.”


Pakistan forms committee to negotiate financial advisory services for Islamabad airport privatization

Updated 18 February 2026
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Pakistan forms committee to negotiate financial advisory services for Islamabad airport privatization

  • Committee to engage Asian Development Bank to negotiate terms of financial advisory services agreement, says privatization ministry
  • Inaugurated in 2018, Islamabad airport has faced criticism over construction delays, poor facilities and operational inefficiencies

ISLAMABAD: Pakistan’s Privatization Ministry announced on Wednesday that it has formed a committee to engage the Asian Development Bank (ADB) to negotiate a potential financial advisory services agreement for the privatization of Islamabad International Airport.

The Islamabad International Airport, inaugurated in 2018 at a cost of over $1 billion, has faced criticism over construction delays, poor facilities, and operational inefficiencies.

The Negotiation Committee formed by the Privatization Commission will engage with the ADB to negotiate the terms of a potential Financial Advisory Services Agreement (FASA) for the airport’s privatization, the ministry said. 

“The Negotiation Committee has been mandated to undertake negotiations and submit its recommendations to the Board for consideration and approval, in line with the applicable regulatory framework,” the Privatization Ministry said in a statement. 

The ministry said Islamabad airport operations will be outsourced under a concession model through an open and competitive process to enhance its operational efficiency and improve service delivery standards. 

Pakistan has recently sought to privatize or outsource management of several state-run enterprises under conditions agreed with the International Monetary Fund (IMF) as part of a $7 billion bailout approved in September last year.

Islamabad hopes outsourcing airport operations will bring operational expertise, enhance passenger experience and restore confidence in the aviation sector.

In December 2025, Pakistan’s government successfully privatized its national flag carrier Pakistan International Airlines (PIA), selling 75 percent of its stakes to a consortium led by the Arif Habib Group. 

The group secured a 75 percent stake in the PIA for Rs135 billion ($482 million) after several rounds of bidding, valuing the airline at Rs180 billion ($643 million).

Pakistan’s Finance Minister Muhammad Aurangzeb said this week the government has handed over 26 state-owned enterprises to the Privatization Commission.