Pakistan, Saudi Arabia discuss new port development projects, Karachi–Jeddah Sister Port pact 

Pakistan and Saudi officials hold talks Pakistan’s federal minister for maritime affairs, Junaid Anwar Chaudhry, said the discussions with the Saudi transport minister in London on the sidelines of International Maritime Organization (IMO) Assembly in London, UK, on November 26, 2025
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Updated 27 November 2025
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Pakistan, Saudi Arabia discuss new port development projects, Karachi–Jeddah Sister Port pact 

  • Saudi delegation to soon share draft MoU for long-term maritime partnership, Pakistan’s maritime minister says after meeting Saudi transport minister
  • Proposal for joint ventures between Pakistan National Shipping Corporation and Saudi Arabia’s national shipping line, Bahri, also under discussion 

KARACHI: Pakistan and Saudi Arabia held wide-ranging talks in London on Thursday focused on new shipping and port development projects, including a proposed Sister Port agreement between Karachi Port and Jeddah Islamic Port, Pakistan’s maritime ministry said.

The two countries have expanded economic and security engagement in recent years, with maritime logistics and port development emerging as a growing area of collaboration. Saudi Arabia is investing heavily in its port infrastructure under Vision 2030, while Pakistan is seeking foreign partnerships to modernize its shipping capacity and upgrade facilities in Karachi and along the Arabian Sea.

Pakistan’s federal minister for maritime affairs, Junaid Anwar Chaudhry, said the discussions with the Saudi transport minister in London on the sidelines of International Maritime Organization (IMO) Assembly focused on broadening maritime ties across shipping, logistics, training and investment. 

“Pakistan and Saudi Arabia agreed to further enhance maritime cooperation,” a statement from the maritime ministry said, adding that both sides reviewed “new cooperation in shipping and port development.”

The two sides also discussed a Sister Port agreement between Karachi Port and Jeddah Islamic Port, a move aimed at boosting cargo movement, harmonizing port procedures and enhancing connectivity between two of the region’s major maritime gateways. 

As part of Pakistan’s efforts to align its maritime sector with global standards, Chaudhry said the two leaders examined “investment opportunities under Maritime Vision 2047,” the country’s long-term plan to expand its port capacity, digitalize shipping systems and build a competitive merchant fleet.

The minister also said a proposal for joint ventures between the Pakistan National Shipping Corporation (PNSC) and Saudi Arabia’s national shipping line, Bahri, was under active consideration. 

He added that the two countries had agreed to expand commercial linkages between private-sector operators, noting that both sides reached agreement on “increasing B2B maritime cooperation.”

Chaudhry also reported progress on seafarer training, a priority for Pakistan as it seeks to expand employment opportunities for its maritime workforce abroad. He said there had been “positive progress” regarding “training opportunities for Pakistani seafarers on Saudi vessels.”

According to the handout, the Saudi delegation informed Pakistan that Riyadh would soon share a draft memorandum of understanding aimed at building a long-term maritime partnership.


Pakistan drops 8,000 MW power procurement, claims $17 billion savings amid IMF-driven reforms

Updated 18 January 2026
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Pakistan drops 8,000 MW power procurement, claims $17 billion savings amid IMF-driven reforms

  • Government says decision taken “on merit” as it seeks to cut losses, circular debt, ease consumer pressure 
  • Power minister says losses fell from $2.1 billion to $1.4 billion, circular debt dropped by $2.8 billion

ISLAMABAD: Pakistan has abandoned plans to procure around 8,000 megawatts of expensive electricity, the power minister said on Sunday, adding that the decision was taken “purely on merit” and would save about $17 billion.

The power sector has long been a major source of Pakistan’s fiscal stress, driven by surplus generation capacity, costly contracts and mounting circular debt. Reforming electricity pricing, reducing losses and limiting new liabilities are central conditions under an ongoing $7 billion IMF program approved in 2024.

Pakistan has historically contracted more power generation than it consumes, forcing the government to make large capacity payments even for unused electricity. These obligations have contributed to rising tariffs, budgetary pressure and repeated IMF bailouts over the past two decades.

“The government has abandoned the procurement of around 8000 megawatts of expensive electricity purely on merit, which will likely to save 17 billion dollars,” Power Minister Sardar Awais Ahmed Khan Leghari said while addressing a news conference in Islamabad, according to state broadcaster Radio Pakistan.

He said the federal government was also absorbing losses incurred by power distribution companies rather than passing them on to consumers.

The minister said the government’s reform drive was already showing results, with losses reduced from Rs586 billion ($2.1 billion) to Rs393 billion ($1.4 billion), while circular debt declined by Rs780 billion ($2.8 billion) last year. Recoveries, he added, had improved by Rs183 billion ($660 million).

Leghari said electricity tariffs had been reduced by 20 percent at the national level over the past two years and expressed confidence that prices would be aligned with international levels within the next 18 months.

Power sector reform has been one of the most politically sensitive elements of Pakistan’s IMF-backed adjustment program, with higher tariffs and tighter enforcement weighing on households and industry. The government says cutting losses, improving recoveries and avoiding costly new capacity are essential to stabilizing public finances and restoring investor confidence.