Ministry assures Maersk of ‘full support’ as Pakistan seeks $2bn investment from Danish company

The Ministry of Maritime Affairs assured Maersk officials of full support in facilitating their operations and addressing any challenges that might arise, a statement said on Monday, as Pakistan eyes $2 billion investment from the Danish company.

A.P. Møller - Mærsk A/S, usually known as Maersk, a Danish shipping and logistics company, intends to expand its business in Pakistan’s shipping sector with an initial investment of $2 billion, Federal Minister for Maritime Affairs Qaiser Ahmed Sheikh said in a statement in August this year.

Denmark’s Ambassador to Pakistan, Jakob Linulf, and Qaiser Ahmed Sheikh later signed a memorandum of understanding (MoU) in October regarding the investment.

Last week, the minister said discussions on $2 billion investment are to be finalised in a high level meeting during the visit of Danish foreign minister scheduled on November 12, 2024.

“We are fully prepared to work with Maersk Line and ensure a smooth and efficient process for their investment,” Qaiser Ahmed Sheikh said in the meeting on Monday, according to the Ministry of Maritime Affairs.

“The agreement with the Danish firm is expected this week,” he said.

Sheikh further added that the terms and conditions of the partnership were being finalised, and that Monday’s meeting was “invaluable in establishing a clear understanding between the two parties ahead of a formal agreement”.

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The minister expressed optimism that the collaboration would pave way for further foreign investment and contribute to the growth of Pakistan’s maritime infrastructure, it added.

“The officials of Maersk Line show full confidence on Government of Pakistan and Ministry of Maritime Affairs. They said that they are satisfied before this major breakthrough of investment,” the statement read.

Fourth Pakistan-Denmark bilateral political consultations

Pakistan and Denmark on Monday held the fourth round of bilateral-political consultations in Islamabad, Pakistan’s Ministry of Foreign Affairs said.

“The two sides conducted a comprehensive review of the full spectrum of bilateral cooperation, encompassing political relations, trade and investment, climate change, renewable energy, infrastructure development and people-to-people contacts,” the foreign office (FO) said.

Important regional and global developments were also discussed, it added.

The Pakistan delegation was led by Additional Foreign Secretary (Europe), Ambassador Shafqat Ali Khan, while the Denmark side was led by State Secretary for Foreign Policy, Ambassador Lisbet Zilmer-Johns.

Infrastructure projects: G2G pact with Denmark on the cards

“Expressing satisfaction at the upward trajectory of bilateral cooperation, the two sides reaffirmed their commitment to maintaining momentum in bilateral relations and coordinating closely on all issues of mutual concern, including at multilateral forums.

They also agreed to commemorate the 75th anniversary of the establishment of diplomatic relations between Pakistan and Denmark in a befitting manner this year,“ the FO statement read.

The two countries will explore new avenues of cooperation in green technologies within the framework of the Green Framework Engagement Agreement signed in September 2022, the FO said.