Dubai’s DP World to invest $400 million in Pakistan rail freight corridor

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Cargo trains carrying shipping containers and coal dust, crossing under a bridge with the backdrop of city railway station, in Karachi, Pakistan, on September 24, 2018. (Reuters/File)
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This picture taken on February 15, 2023, shows a general view of the Karachi seaport. (AN Photo/File)
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Updated 31 August 2025
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Dubai’s DP World to invest $400 million in Pakistan rail freight corridor

  • Corridor will improve movement of freight from Pakistan’s commercial hub Karachi to various parts of the country
  • Project to reduce port congestion, accelerate trade facilitation, modernize logistics infrastructure, says state-owned NLC

PESHAWAR: Dubai-based DP World will invest $400 million in a freight corridor from Pakistan’s southern port city of Karachi to the Pipri marshalling yard, the state-run National Logistics Corporation (NLC) said on Sunday. 

The Karachi Freight Corridor is an infrastructure project in Pakistan aimed at improving movement of freight from Karachi, Pakistan’s largest city by population and its commercial hub, to various parts of the country. The project involves the construction of a dedicated double-track corridor and other related facilities that will run 50 km from Karachi port to the Pipri marshalling yard.

“The construction of the dedicated freight corridor Pipri project will commence with immediate foreign direct investment of $20 million, which will subsequently reach $400 million under a joint venture agreement between DP World/National Logistics Corporation (NLC) and Pakistan Railways,” the statement said. 

Pakistan and the UAE last year signed two inter-governmental framework agreements to establish a dedicated rail freight corridor and economic zone near Karachi. 

The agreements cover plans for over $3 billion investments in railways, economic zones and infrastructure. DP World will act on behalf of Dubai, while the Pakistan Railways and Port Qasim Authority will act on behalf of Pakistan.

The NLC pointed out that once operational, the Karachi Freight Corridor project will significantly reduce port congestion, accelerate trade facilitation and modernize Pakistan’s logistics infrastructure. 

It said the move would help boost imports, exports and the overall economic activity in the country.

By investing in freight and port infrastructure, Islamabad hopes to capture a larger share of regional trade flows, a goal that has gained urgency as Pakistan struggles to revive its economy and expand exports.

DP World has been collaborating with NLC in improving Pakistan’s logistics infrastructure. Earlier this week, the NLC and DP World completed their first commercial cargo delivery from the UAE to Tajikistan via Karachi. 

The collaboration entailed moving 38 tons of automotive spare parts from Jebel Ali port in Dubai to Karachi and then transporting them overland to Dushanbe. 

The journey was completed in just 16 days, which DP World said was the fastest transit time currently available between Dubai and Dushanbe. Competing routes typically take between 20 and 70 days.


Pakistan vows to enhance multilateral cooperation with China, Russia at SCO moot

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Pakistan vows to enhance multilateral cooperation with China, Russia at SCO moot

  • Pakistan deputy PM holds meetings with Russian counterpart, Chinese premier at sidelines of SCO summit
  • Ishaq Dar, Russian deputy PM review bilateral ties, cooperation across political, economic, connectivity spheres

ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar this week vowed to enhance bilateral ties and multilateral cooperation with Beijing and Moscow, state media reported, as he met senior officials from China and Russia during the Shanghai Cooperation Organization (SCO) summit. 

Dar had arrived in Russia on Monday to attend the two-day SCO Council of Heads of Government (CHG) summit in Moscow, met Chinese PM Li Qiang and Russian Deputy PM Alexei Overchuk. 

Dar and Overchuk reviewed the full gamut of Pakistan-Russia relations, focusing on strengthening cooperation across political, economic, energy, connectivity, agricultural, industrial, educational and people-to-people areas through institutionalized mechanisms, state broadcaster Radio Pakistan reported on Tuesday. 

“Pakistan and Russia have reaffirmed their commitment to enhanced cooperation at bilateral and multilateral fora, including the United Nations and Shanghai Cooperation Organization,” the state broadcaster said. 

Overchuk recalled his recent visits to Pakistan and noted the country’s potential as a regional hub for transit and connectivity, the state media said. 

Meanwhile, Dar also met the Chinse prime minister at the sidelines of the SCO moot when it concluded. 

“They reaffirmed the ‘all-weather’ Pakistan-China strategic partnership, reviewed bilateral and multilateral cooperation— especially within the SCO— and praised the Shanghai Spirit principles guiding regional collaboration,” Radio Pakistan said. 

Dar addressed the CHG summit on Tuesday, urging the bloc to activate its financial mechanisms. The Pakistani deputy premier said tools such as the SCO Interbank Consortium were under-used despite the rising need for investment in regional trade corridors, digital links and infrastructure.

“The SCO has established a foundation for sustainable economic progress, but we must aggressively utilize the tools already at our disposal, like the SCO Interbank Consortium, to finance connectivity and technical collaboration projects,” he said at the forum.

Dar noted that Pakistan viewed economic, cultural and humanitarian cooperation as “interconnected threads in a single, stronger fabric of regional partnership,” and urged members to move from political declarations toward practical, cross-cutting initiatives.

He also highlighted disaster preparedness as an emerging priority for the bloc, saying Pakistan had developed a technology-driven early-response system and was ready to host simulation exercises with SCO partners.