Pakistan and UAE deepen rail cooperation following 3 billion dollar investment
Pakistan and the United Arab Emirates have signed two memoranda of understanding, deepening their cooperation in rail. The UAE is helping Pakistan develop its infrastructure, particularly through funding a new dedicated freight line.
The MoUs were signed by Pakistan Railways CEO, Amir Ali Baloch, and the CEO of Etihad Rail, Shadi Malik, during a visit to Pakistan on February 28.
Under the agreements, the two rail operators will study opportunities to develop Pakistan’s existing rail infrastructure and to build a new rail line. Etihad Rail says the collaboration aims to strengthen connectivity, facilitate mobility, and contribute to Pakistan’s economic growth.
Dedicated freight line
The UAE will fund the construction of a new 50-kilometre freight line from the port of Karachi to the Pipri marshalling yard. The agreement also envisages the construction of related logistics and terminal facilities, which will be led by Dubai-based DP World.
Earlier, in January 2024, the governments of the UAE and Pakistan signed an agreement for the UAE to invest more than three billion dollars in Pakistan’s rail network.
