Daewoo Pakistan Express Bus Service Limited (Daewoo Express) has signed a groundbreaking agreement with a consortium of Development Financial Institutions (DFIs), headed by Saudi-Pak Industrial and Agricultural Investment Company Limited, to secure a five-year lease financing facility worth Rs 2,000 million. The funding will be utilized to procure Electric Vehicles (EV) and Euro III intercity buses from Golden Dragon, China. This partnership is a significant step towards promoting sustainable and climate-resilient transportation solutions in Pakistan.
The agreement was formalized at a signing ceremony held on December 26, 2024, at a local hotel. Representatives from the DFIs, Daewoo Express, and other key stakeholders attended the event. The consortium includes Pak-China Investment Company Limited, Pak-Libya Holding Pvt Limited, and Pak-Oman Investment Company Limited. JS Bank has been designated as the Account Bank, and Mohsin Tayebaly & Co served as the Transaction Legal Counsel for the deal.
Faisal Ahmed Siddiqui, CEO of Daewoo Express, emphasized the company’s dedication to environmental sustainability during his address at the ceremony. Daewoo Express, which has been a leader in Pakistan’s transportation sector for over 25 years, currently operates a fleet of more than 1,000 buses across intercity and intra-city routes. The company plans to replace a significant portion of this fleet with environmentally friendly Electric Vehicles (EVs) and Euro III-compliant buses as part of its ambitious five-year strategy.
Siddiqui highlighted that this transition will not only enhance the efficiency of Daewoo Express’s fleet but will also contribute to Pakistan’s long-term environmental goals. “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,” he stated, expressing gratitude to the DFIs for their support.
This move by Daewoo Express aligns with Pakistan’s broader efforts to reduce carbon emissions and promote cleaner, more sustainable transportation solutions. The adoption of Electric Vehicles and Euro III buses is expected to make a significant impact on reducing the environmental footprint of the country’s transportation sector, while also improving the overall efficiency of bus services.
The financing for the procurement of these vehicles will help Daewoo Express accelerate its transition toward a more eco-friendly fleet, offering passengers a cleaner and more sustainable travel experience. The new buses, which include both EVs and Euro III models, are expected to meet the latest environmental standards and contribute to reducing air pollution in urban and intercity areas.
The deal also reflects the growing role of Development Financial Institutions in supporting the sustainable development of industries in Pakistan. By financing projects that focus on sustainability and environmental preservation, these institutions are playing a crucial role in the country’s long-term economic and environmental strategy.
With this new financing facility, Daewoo Express is poised to strengthen its position as a leader in Pakistan’s transport sector while making a positive contribution to environmental conservation. The company’s commitment to sustainability, coupled with its extensive experience in the transport industry, ensures that this new initiative will have a lasting impact on the future of transportation in Pakistan.