Karachi: The Federal Cabinet has approved a $2 billion investment plan from Denmark for Pakistani ports.
Federal Minister for Maritime Affairs, Qaiser Ahmed Sheikh, briefed journalists that Denmark is ready to make significant investments to develop Pakistani ports.
An agreement will be signed between the two countries, with the Minister of Ports and Shipping traveling to Denmark this month.
The Federal Cabinet has approved the government-to-government memorandum of understanding (MoU).
The MoU will be between Maersk, the world’s largest shipping line, and the Karachi Port Trust (KPT).
Maersk will invest $2 billion in Pakistan over the next two years.
The investment will cover port infrastructure, terminals, dredging, transshipment, and road construction.
Maersk will also build large warehouses and engage in shipbreaking in Pakistan.
The Minister for Maritime Affairs mentioned that there is a proposal to include the Pakistan National Shipping Corporation (PNSC) in the privatization list.
He stated that PNSC is not a strategic entity and that it could potentially earn much more than its current profits.
CFO of PNSC, Jarrar Haider Kazmi, indicated that PNSC’s profit is expected to be 20 billion rupees this year.
Last year, PNSC’s revenue was over 30 billion rupees, due to ship sales, high dollar rates, and increased freight rates.