UAE’s DP World signs $400 million freight corridor deal with Pakistan Railways

UAE’s DP World signs $400 million freight corridor deal with Pakistan Railways
Shipping containers are seen stacked on a ship at a sea port in Karachi, Pakistan, on April 6, 2023. (AFP/File)
Short Url
Updated 2 min 22 sec ago

UAE’s DP World signs $400 million freight corridor deal with Pakistan Railways

UAE’s DP World signs $400 million freight corridor deal with Pakistan Railways
  • The corridor will improve the movement of goods from Karachi Port to other cities
  • DP World is already working with NLC to strengthen Pakistan’s logistics infrastructure

PESHAWAR: A Dubai-based global port management company has formally partnered with Pakistan’s National Logistics Corporation (NLC) and Pakistan Railways to build the first phase of a $400 million freight corridor linking Karachi Port with the Pipri marshalling yard, a major rail hub on the city’s outskirts, said an official statement on Wednesday.

The freight corridor is aimed at improving the movement of goods from the country’s commercial hub to other regions.

Karachi Port currently handles 54 percent of Pakistan’s trade with an annual capacity of 125 million tons, and the government wants to streamline its operations as part of export-led growth plans.

The corridor project is funded by DP World and involves the construction of a dedicated double-track railway system along with supporting facilities, stretching about 50 kilometers from the port to the Pipri yard.

“The NLC, DP World signed commercial agreement with Pakistan Railways for construction of Phase-1 of the Dedicated Freight Corridor Pipri,” the NLC said in a statement on Wednesday.

The project will boost freight capacity of Pakistan Railways, speed up cargo movement and ease congestion at Karachi Port and on surrounding roads in the country’s largest and most densely populated city, it added.

On the occasion, Railways Minister Hanif Abbasi said the project would modernize freight transportation and strengthen revenues through freight charges, track access fees and revenue-sharing mechanisms.

Islamabad aims to capture a larger share of regional trade by investing in freight and port infrastructure.

Pakistan and the UAE last year signed two inter-governmental framework agreements to establish a dedicated rail freight corridor and an economic zone near Karachi, covering more than $3 billion in planned investments

DP World is already working with NLC to strengthen Pakistan’s logistics infrastructure. In August, the two organizations completed their first commercial cargo delivery from the UAE to Tajikistan via Karachi.

The shipment consisted of 38 tons of automotive spare parts, transported from Jebel Ali Port in Dubai to Karachi, and then moved overland to Dushanbe.

The entire journey took just 16 days, which DP World noted is the fastest transit time currently available between Dubai and Dushanbe.

Competing routes typically take between 20 and 70 days.


Pakistan floods wipe out 60% of rice crop, threaten cotton, sugarcane harvests — business union

Pakistan floods wipe out 60% of rice crop, threaten cotton, sugarcane harvests — business union
Updated 13 sec ago

Pakistan floods wipe out 60% of rice crop, threaten cotton, sugarcane harvests — business union

Pakistan floods wipe out 60% of rice crop, threaten cotton, sugarcane harvests — business union
  • Pakistan Business Forum urges “Agricultural Emergency” as crop losses threaten wheat supply and food prices
  • Analysts say agriculture makes up three-fourths of $1.4 billion flood losses, with risks to growth, imports

KARACHI: Record monsoon floods have destroyed up to 60% of Pakistan’s rice crop and badly damaged sugarcane and cotton, industry groups warned this week, saying the devastation could derail production targets and weigh on the fragile economy.

Punjab province, Pakistan’s most populous and its main farming belt, has borne the brunt of the disaster of the latest monsoon spell that began late last month. According to figures from the Provincial Disaster Management Authority (PDMA) released on Tuesday, 66 people have been killed, 21 million displaced or evacuated to safer areas, and around 1.95 million acres of farmland inundated after weeks of record monsoon rains across Punjab which have swelled the Chenab, Ravi and Sutlej rivers. 

Floodwaters are now merging into the Indus in the southern province of Sindh, threatening farmland, villages and major towns. Releases from Indian dams on the Sutlej River have added to the flows, as authorities in New Delhi ease pressure on swollen reservoirs during heavy rains.

The scale of the inundation has raised alarm among farmers and industry groups, who warn that key national output goals are now under threat.

For cropping season 2025-26, Pakistan’s Federal Committee on Agriculture has set output goals of 9.17 million tons of rice, 9.7 million tons of maize, 80.3 million tons of sugarcane and 10.2 million bales of cotton. But flooding in Punjab has left those targets “in jeopardy,” according to the Pakistan Business Forum (PBF).

“This crisis must be treated as a wake-up call to reform our agricultural strategies,” PBF President Khawaja Mehboob ur Rehman told Arab News. “We must stop viewing floods purely as disasters and start managing them as resources.”

A villager waits to get evacuated from a flooded area in Daryapur village near Jalalpur Pirwala, in Multan district, Pakistan, on Sept. 9, 2025. (AP)

PBF’s preliminary assessment put the damage in Punjab at more than 1.5 million acres of farmland, including 300,000 acres in Faisalabad division, 200,000 acres in Gujrat and Gujranwala, 130,000 acres in Bahawalpur, 145,000 acres in Sahiwal and 99,000 acres in Lahore division. The group said land in Multan, Vehari and Khanewal had also been badly affected.

The forum estimated crop losses of 60% of the rice harvest, 30% of sugarcane and 35% of cotton, and warned that Pakistan might have to import around 5 million tons of wheat to stabilize domestic prices.

Ahmad Jawad, PBF’s chief organizer, said floods may shave 0.80 percent off GDP this year.

“While the headline figure of 0.80% of GDP may appear modest from a macroeconomic perspective, this is only an initial assessment and may increase,” he told Arab News.

Brokerage firm Arif Habib revised down its projection for Pakistan’s annual growth from 3.4% to 3.2%, saying the agriculture sector would expand by only 1.1% this year.

“Pakistan’s growth trajectory, once showing signs of recovery, is again under strain as the 2025 floods devastate the agricultural sector,” Arif Habib said in a research note.

The firm estimated total flood losses at Rs409 billion ($1.4 billion), with agriculture absorbing nearly three-fourths, or Rs302 billion ($1.0 billion).

“This [Rs302 billion or $1.0 billion loss] accounts for nearly three-fourths of the total estimated loss and about 0.24 percent of GDP, reflecting the sector’s acute vulnerability to climate shocks and the risks these events pose to food security and rural livelihoods,” said Sana Tawfik, head of research at Arif Habib.

The brokerage projected agriculture-related import pressures of nearly $1.93 billion in fiscal 2026, including as much as 737,000 tons of cotton imports costing $1.06 billion. 

Inflation could also accelerate to 7.2% from a pre-flood estimate of 5.5% as shortages of staples like rice, sugar, vegetables and meat push up prices.

PBF has urged the government to declare an “Agricultural Emergency,” launch canal infrastructure projects in Punjab and Sindh, and provide interest-free loans of up to Rs2 million ($7,200) for small and medium farmers.

“The local banks should come and take the responsibility under force majeure and give interest-free loans to the farmers,” PBF president Rehman added. 

Other recommendations include cracking down on riverbank encroachments, improving local water storage and authorizing imports of wheat and rice to stabilize the market.


Pakistan says countries contributing to UN peacekeeping excluded from key mandate decisions

Pakistan says countries contributing to UN peacekeeping excluded from key mandate decisions
Updated 28 min 58 sec ago

Pakistan says countries contributing to UN peacekeeping excluded from key mandate decisions

Pakistan says countries contributing to UN peacekeeping excluded from key mandate decisions
  • Its envoy calls peace operations central to the UN’s work, seeks necessary financial backing for them
  • Pakistan urges civilian protection at the core of operations, accountability for attacks on peacekeepers

ISLAMABAD: Pakistan told the United Nations Security Council on Tuesday countries contributing to UN peacekeeping missions should be given a greater voice in decision-making processes, saying they carry the burden in the field but are excluded from crucial choices that impact the operations.

Pakistan has been one of the UN’s leading troop contributors for over seven decades, having sent more than 250,000 of its personnel serving in 48 missions around the world. The country also hosts one of the oldest UN missions, the Military Observer Group in India and Pakistan deployed in Jammu and Kashmir.

At least 182 Pakistani peacekeepers have died while serving under the UN flag.

“Troop- and police-contributing countries, which shoulder the burden in the field, remain mostly excluded from crucial decisions,” Pakistan’s UN Ambassador Asim Iftikhar Ahmad told an open debate on the future of peace operations, co-sponsored by Pakistan and Denmark. “This divide between ‘mandate drafters’ and ‘mandate implementers’ must end.”

Ahmad maintained UN peacekeeping, long hailed as one of multilateralism’s success stories, was now under siege, starved of resources and constrained in mandates.

With no new mission deployed since 2014 and several shutting down, he said the secretary-general’s review on the future of peace operations was critical to restore confidence.

The Pakistani envoy outlined priorities, including the protection of civilians at the center of operations, strengthening accountability for attacks on peacekeepers, empowering missions to support political settlements, and adapting to emerging challenges such as climate risks and the need for more women peacekeepers.

Ahmed said his country saw peacekeeping as central to the Council’s work and urged member states to provide adequate political and financial backing.

“Peace operations ... are proven, effective instruments of peace,” he said. “We must protect and strengthen them by investing strategically in their long-term success.”


Pakistan’s trade deficit with Gulf nations widens 28% in July – central bank

Pakistan’s trade deficit with Gulf nations widens 28% in July – central bank
Updated 10 September 2025

Pakistan’s trade deficit with Gulf nations widens 28% in July – central bank

Pakistan’s trade deficit with Gulf nations widens 28% in July – central bank
  • Exports to GCC dropped 12.5% to $277.3 millions as imports climbed 19% to $1.68 billion
  • Statistics reveal UAE was Pakistan’s top GCC oil supplier, with July imports at $816 million

KARACHI: Pakistan’s trade deficit with Gulf nations widened 28.4% to $1.4 billion in July, the first month of the current fiscal year, driven by rising imports from the oil-rich region, State Bank of Pakistan (SBP) data showed this week.

Last year in July, the gap with the six-member Gulf Cooperation Council (GCC) — , the United Arab Emirates (UAE), Qatar, Kuwait, Oman and Bahrain — had stood at $1.09 billion.

This time around, exports to the bloc fell 12.5% year-on-year to $277.3 million, while imports rose 19% to $1.68 billion.

Pakistan has been negotiating a free trade agreement (FTA) with the GCC to improve market access and signed preliminary accords in Riyadh two years ago.

“This is a significant development as the FTA is the first by GCC with any country since 2009 and marks a milestone in both sides’ economic cooperation,” then-commerce minister Gohar Ejaz said at the time.

Pakistan has continued to rely heavily on petroleum supplies from GCC states since then.

Its imports from the bloc totaled $17.9 billion in FY2024-25, nearly matching earnings from the country’s textile exports. In return, Pakistan exported $3.79 billion worth of goods and services to the GCC.

According to the data, the widening deficit reflects surging imports from the UAE, Pakistan’s largest oil supplier in the bloc.

July imports from the Emirates reached $816 million, while the FY25 bill stood at $8 billion.

The UAE is also Pakistan’s biggest export market in the GCC, buying $2.12 billion worth of goods last year, SBP data showed.

and Qatar were other key suppliers, exporting $3.8 billion and $3.5 billion worth of oil and gas to Pakistan respectively in FY25.

Pakistan’s cash-strapped government is struggling to rein in its external account by curbing imports and boosting exports, but the country’s overall trade deficit rose nine percent to $26 billion last year, according to the Pakistan Bureau of Statistics.


Sindh disaster authority says over 300 rescued in Karachi floods as charity reports two deaths

Sindh disaster authority says over 300 rescued in Karachi floods as charity reports two deaths
Updated 10 September 2025

Sindh disaster authority says over 300 rescued in Karachi floods as charity reports two deaths

Sindh disaster authority says over 300 rescued in Karachi floods as charity reports two deaths
  • Sindh PDMA chief says communities along Karachi’s Lyari and Malir rivers worst hit by rains
  • More rains are expected in 24 to 48 hours in the city, says the provincial information minister

KARACHI: Sindh’s disaster authority said on Wednesday more than 300 people were rescued in Pakistan’s commercial capital Karachi after heavy rains lashed the city for several hours, inundating low-lying areas and forcing schools to shut, as a local charity reported at least two people drowned after being swept into a stream.

The Pakistan Meteorological Department warned of a new spell of rains in southern Sindh and neighboring Balochistan provinces this week, with risks of severe urban flooding in Karachi, Hyderabad and Sukkur as well as flash floods in mountain catchments.

Torrential downpours submerged parts of Karachi late Tuesday, as authorities in Sindh were already bracing for looming “super floods” along the Indus River after weeks of record monsoon rains across Punjab, the country’s agricultural heartland, sent massive torrents downstream.

Millions were displaced in Punjab after three major eastern rivers — Chenab, Ravi and Sutlej — surged following water releases from Indian dams amid New Delhi’s efforts to ease pressure on swollen reservoirs.

“The populations living along the Lyari and Malir rivers have been the worst affected by the rains,” Sindh Provincial Disaster Management Authority (PDMA) Director General Salman Shah said. “So far, 325 people have been rescued. Nine PDMA teams and 50 Rescue 1122 personnel were on standby, and about 400 workers are currently engaged in rescue operations.”

Karachi’s mayor, Murtaza Wahab, toured affected areas during the night and said in the early hours of Wednesday that all major arteries and underpasses were clear for traffic. He cautioned that drizzle was still continuing and urged residents to remain safe during the inclement weather.

The Karachi commissioner’s office announced late Tuesday a holiday for all public and private educational institutions across the division, citing forecasts of more heavy rain.

Edhi Foundation said its rescue teams pulled bodies from a stream in the city after a van was washed away, while searches continued for more missing passengers. The charity identified the victims as a 45-year-old man and a 60-year-old woman.

Sindh Information Minister Sharjeel Inam Memon also said during the day large-scale rescue and relief operations were under way following the rains and rising river levels.

“The situation in Karachi is gradually improving,” he said, adding that overflowing in Lyari and Malir rivers and high sea tides had slowed the drainage of rainwater.

Memon warned of another spell of rain in the city in the next 24 to 48 hours but noted conditions would normalize quickly if fresh downpours did not occur.

MORE RAINS EXPECTED

Meanwhile, the National Emergencies Operation Center of the National Disaster Management Authority (NDMA) issued a flood alert for Sindh and Balochistan, warning of widespread rain and thunderstorms in Karachi, Hyderabad, Jamshoro, Thatta, Badin, Sujawal, Tharparkar, Umerkot, Sanghar, Dadu, Jacobabad and other districts.

It noted that low-lying urban areas were at risk of submergence, with traffic flows likely to be disrupted.

Heavy rain was also forecast for Sukkur, Rohri, Larkana, Shikarpur, Ghotki and Kashmore, while downpours in the Kirthar mountain range could trigger hill torrents.

In Balochistan, heavy rainfall was expected over the next 24 hours in Lasbela, Hub, Khuzdar, Awaran, Barkhan, Sui, Sibi, Dera Bugti, Naseerabad, Kohlu, Kalat and Zhob. Further rain was forecast in Kech, Gwadar,

Pasni, Ormara, Surab and southern Washuk, with flash floods feared in Wadh, Khuzdar, Bela, Ormara and Hingol valley.

The NDMA urged the public to avoid unnecessary travel, keep vehicles parked in safe areas, and stay clear of submerged roads and underpasses.

RIVER SITUATION

According to an update by the Punjab PDMA at 11:30 a.m. Wednesday, river flows in Punjab remained high, with significant pressure points downstream.

On the Chenab, flows at Trimmu headworks near Jhang stood at 250,005 cusecs and steady, while gauges at Sher Shah Bridge near Multan showed water levels holding steady at 393.40 feet.

The Sutlej carried some of the heaviest volumes, with nearly 196,000 cusecs at Ganda Singh Wala near Kasur and more than 530,000 cusecs at Punjnad headworks, where operational capacity was reported reduced due to backwater effects from the Indus.

Downstream in Sindh, the Guddu Barrage was handling more than 502,000 cusecs, underscoring the threat of flooding as Indus waters surged south.

The provincial information minister of Sindh said 4,881 people had been evacuated from the riverine areas in the last 24 hours, bringing the total number of people relocated in the recent days to 146,492.

He said 5,296 people had received medical assistance in the past day through 163 fixed and mobile health centers, raising the cumulative total to 55,336.

Memon added that 11,078 livestock had also been moved to safety in the past 24 hours, with the total reaching 400,018.

Veterinary teams had vaccinated or treated more than 58,000 animals in a day, pushing the cumulative figure past one million.


Pakistan PM directs crackdown on tax evaders in bid to shore up revenues

Pakistan PM directs crackdown on tax evaders in bid to shore up revenues
Updated 10 September 2025

Pakistan PM directs crackdown on tax evaders in bid to shore up revenues

Pakistan PM directs crackdown on tax evaders in bid to shore up revenues
  • Pakistan has set a record-high tax collection target of $47 billion for 2025–26, marking a 9% increase from the previous year
  • Shehbaz Sharif stresses leveraging Federal Board of Revenue’s internal resources, private sector expertise to detect tax evaders

ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif has ordered a crackdown on tax evaders and recovery of outstanding dues, Pakistani state media reported on Tuesday, amid the government’s efforts to shore up revenues.

The prime minister issued the directives at a meeting on the Federal Board of Revenue-related matters, during which he called for a public awareness campaign regarding government measures against tax evasion.

Pakistan has lately introduced several reforms to ensure economic stability and to meet structural benchmarks under a $7 billion International Monetary Fund (IMF) program Islamabad secured last year.

The South Asian country has one of the lowest tax-to-GDP ratios in the region, despite a population of more than 240 million, and has often failed to meet its collection targets.

“Shehbaz Sharif asked the FBR to foster a business-friendly environment and ensure the provision of all possible facilities to taxpayers. He also directed the hiring of professionals to identify tax evaders and recover dues from them,” the Radio Pakistan broadcaster reported.

“He stressed the importance of leveraging both FBR’s internal resources and private sector expertise to detect individuals and companies involved in tax evasion.”

In June, Sharif’s government set a record-high tax collection target of Rs14.13 trillion ($47.4 billion) for the fiscal year 2025–26, marking a 9 percent increase from the previous year. Officials say meeting this goal is essential to reducing reliance on external debt and ensuring long-term fiscal sustainability.

Since then, the prime minister has approved modern digital ecosystem for the FBR to increase its collection and the launch of simplified digital tax returns to increase compliance and widen the country’s narrow tax base.

At Tuesday’s meeting, Sharif also asked officials to expedite the completion of an income and sales taxpayer directory, aimed at recognizing and honoring responsible taxpayers.

“Responsible citizens who regularly pay taxes are the backbone of the national economy,” he was quoted as saying. “Acknowledging taxpayers and taking firm action against tax evaders would contribute significantly to broadening the tax base.”