KARACHI: Pakistan’s largest port operator is evaluating a proposal to develop a Rs1.5 trillion ($5.39 billion) waterfront business district in Karachi, a project supported by a Saudi business consortium and expected to become one of the country’s biggest real estate developments.
The proposal stems from a memorandum of understanding (MoU) signed last month between the Karachi Port Trust (KPT), Saudi Business Council-NAJD Gateway Holding Company, Arif Habib Dolmen REIT Management Limited and Pakistan Corporate Consortium to explore the development of the maritime business district on 140 acres of prime waterfront land owned by the port authority.
“This will be a project of at least 1.5 trillion [rupees],” KPT Chairman Rear Admiral (r) Shahid Ahmed said during a media briefing this week.
“Saudi Arabia has already expressed its desire to invest in this,” he continued, “and so have many other countries.”
Ahmed said Arif Habib Group had proposed to lead the project, with construction expected to begin in early 2028 after feasibility studies, town planning and financial modeling are completed.
“Its feasibility has just started,” he said. “It will take at least one to one-and-a-half years to get out of the feasibility stage.”
The proposed district would comprise commercial offices, hotels, convention and exhibition facilities, serviced apartments, shopping and entertainment venues, educational institutions, and dedicated zones for marine technology, logistics, digital banking and port-linked businesses.
Ahmed said the proposed development would be structured through a Real Estate Investment Trust (REIT), allowing institutional and individual investors from Pakistan and abroad to invest in the project while KPT contributes the land.
He said Arif Habib Group had already submitted a consolidated REIT proposal that was under evaluation.
Pakistan has been seeking greater Saudi investment as Riyadh expands its economic engagement with Islamabad, particularly in mining, energy, infrastructure and logistics.
Speaking to Arab News, Arif Habib said his group would begin mobilizing investors after KPT completed its evaluation of the proposal and the project secured all required regulatory approvals, including from the federal cabinet.
He said the project would follow a public-private partnership model, with KPT contributing the land as equity while investors finance construction.
Asked how much foreign investment, particularly from Saudi Arabia, the project could attract, Habib said it was too early to estimate.
“They [the KPT officials] are in the process of evaluating this project,” he said. “But whatever it is, whether it is foreign or local investment, I think is doable.”
Ahmed, the KPT chairman, also expressed optimism about the project.
“Maritime business district will be the biggest project of Pakistan,” he said.
