Dubai, UAE – Pakistan has taken steps to finalize a deal with the United Arab Emirates (UAE) for the handover of the Karachi port terminals, potentially marking the first inter-governmental transaction under a law implemented last year to raise emergency funds.
The decision was made during a meeting chaired by Finance Minister Ishaq Dar, held by the Cabinet Committee on Inter-Governmental Commercial Transactions, as reported by The Express Tribune.
To facilitate the negotiation process, a committee has been formed to establish a commercial agreement between the Karachi Port Trust (KPT) and the UAE government.
The negotiation committee, headed by Pakistan Minister for Maritime Affairs Faisal Sabzwari, has been authorized to finalize a draft agreement covering operation, maintenance, investment, and development of the port terminals. The committee comprises additional secretaries of Finance and Foreign Affairs, the special assistant to the Pakistan Prime Minister Jehanzeb Khan, the Chairman of the Karachi Port Terminal (KPT), and general managers of the KPT.
Pakistan’s objective is to reach an agreement with Abu Dhabi Ports (ADP), a subsidiary of the Abu Dhabi Ports Group, for the handover of the terminals. The UAE government had previously expressed interest in acquiring the Karachi port terminals, which were under the administrative control of the Pakistan International Containers Terminals (PICT), as reported by The Express Tribune.
Abu Dhabi Ports operates and owns ten ports and terminals in the UAE.
In order to address the country’s urgent need for additional funds following the expiration of its agreement with the International Monetary Fund, the coalition government had enacted the Intergovernmental Commercial Transactions Act last year. This law aims to expedite the sale of state assets to raise funds.
The handover of the Karachi port terminals to the UAE would serve as a significant development in Pakistan’s efforts to secure emergency funds through inter-governmental transactions. The negotiation committee will work towards finalizing the agreement, outlining the terms of operation, investment, and development, in collaboration with Abu Dhabi Ports.