ISLAMABAD, Dec 22: Daewoo Pakistan Express Bus Service Limited (Daewoo Express) has signed a landmark agreement with a consortium of Development Financial Institutions (DFIs), led by Saudi-Pak Industrial and Agricultural Investment Company Limited, to secure a 5-year lease financing facility worth Rs 2,000 million. The funding will facilitate the procurement of Electric Vehicles (EV) and Euro III intercity buses from Golden Dragon, China, marking a significant step towards sustainable and climate-resilient transportation solutions in Pakistan.
The signing ceremony, held at a local hotel on Thursday, was attended by representatives from the DFIs, Daewoo Express, and key stakeholders. The DFIs in the consortium include Pak-China Investment Company Limited, Pak-Libya Holding Pvt Limited, and Pak-Oman Investment Company Limited. JS Bank acted as the Account Bank, while Mohsin Tayebaly & Co served as the Transaction Legal Counsel.
Daewoo Express Leads the Way in Green Transport
Faisal Ahmed Siddiqui, CEO of Daewoo Express, highlighted the company’s commitment to environmental sustainability during the event. “Daewoo Express has been at the forefront of Pakistan’s transport sector for over 25 years, operating a fleet of more than 1,000 buses across intercity and intracity routes,” he said.
He outlined the company’s ambitious 5-year strategy, emphasizing plans to replace a significant portion of its current fleet with environmentally friendly EVs and Euro III buses. “This transition will not only enhance fleet efficiency but also support Pakistan’s long-term environmental goals,” Siddiqui stated.
Expressing gratitude to the DFIs, he added, “We deeply appreciate the collaboration that has made this transaction possible, and we are committed to leveraging this opportunity to contribute to a greener future.”
DFIs Drive Sustainable Development
Rizwan Ahmed, General Manager and CEO of Saudi-Pak Industrial and Agricultural Investment Company Ltd., underscored the importance of the initiative. “We are honored to lead Pakistan’s first-ever DFI Syndicate for a long-term lease arrangement,” he said.
Ahmed expressed hope that the transaction would inspire private-sector participation in sustainable transport and infrastructure projects. “By supporting long-term financing for green transportation initiatives, DFIs are paving the way for impactful solutions to address environmental challenges,” he remarked.
He also stressed the replicability of such financing structures across various sectors, further amplifying their impact on sustainable development.
Urgency for Green Transportation
With Pakistan ranking among the top ten countries most affected by climate change, sustainable transportation solutions are imperative. The transportation sector is a significant contributor to global emissions, accounting for approximately one-sixth of the total.
This strategic partnership between Daewoo Express and the DFI consortium demonstrates a unified commitment to addressing these challenges and fostering a greener, more sustainable future for Pakistan.
