Islamabad (Reuters) – Hong Kong conglomerate CK Hutchison Holdings Limited’s ports subsidiary plans to invest $1 billion to upgrade its operations in Pakistan, its Finance Ministry said on Friday.
“Hutchison Ports presented their upcoming investment plan of $1 billion, aimed at upgrading their existing terminals to enhance operational efficiency, logistics connectivity, and automation,” the ministry said in a statement.
No timeframe was provided for the proposed investment.
The investment is expected to generate at least $4 billion in revenue over the next 25 years through royalty, rent, and tax contributions, the statement said, citing a Hutchison Ports delegation.
The announcement followed a meeting between Pakistan’s Finance and Revenue Minister Senator Muhammad Aurangzeb and senior executives from Hutchison Ports.
The company has been operating two major terminals in Pakistan over a 25-year period, and has contributed more than 225 billion Pakistani rupees ($805.01 million) in government revenue, the statement said.
The planned investment would automate Hutchison’s services in the southern city of Karachi, where it operates a deep-water container terminal, and improve roads and parking facilities to ease cargo movement.
Pakistan has been trying to attract foreign investment to shore up its low reserves and kick-start its flagging economy.
Ports were identified as one of the infrastructure developments considered vital to draw investment into Pakistan by the head of the World Bank’s investment arm earlier this month in an interview with Reuters.
($1 = 279.5000 Pakistani rupees)
(Reporting by Saad Sayeed; Editing by Rachna Uppal)
