Pakistan approves deal to handover two more karachi terminals to UAE
The United Arab Emirates (UAE) would receive two more seaport terminals under a commercial arrangement that Pakistan has approved.
According to a late-night statement from the finance ministry, “the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) recommended the Federal Cabinet for approval of the amended commercial agreement.” It is typical for the cabinet to offer the UAE two additional terminals after receiving the nod from its subcommittee, which is chaired by Finance Minister Ishaq Dar.
The UAE government-owned company will pay an additional US$25 million upfront, adjustable against revenue sharing over the course of the following seven years, with US$3 million each year for the first five years and US$5 million annually for the following two.
With the new decision, 85% of the east wharf of the Karachi port would be exclusively available for operations and development by the Abu Dhabi (AD) Ports of the United Arab Emirates.
The concessioner will begin construction in September 2023 to upgrade the facility.
Prior to that, the CCoIGCT examined the suggestions made by the negotiating committee for the construction of the bulk and general cargo terminal at Karachi Port, which met twice on August 8, 2023.
The meeting was attended by Syed Faisal Ali Sabzwari, Syed Naveed Qamar, Khurram Dastgir Khan, SAPM on finance Tariq Bajwa, SAPM on revenue Tariq Mehmood Pasha, secretary for maritime affairs, secretary for law and justice, and chairman of the KPT.
It is important to note that the Price Negotiation Committee (PNC) was instructed to seek a higher price by the same cabinet committee just two days prior after it had declined to approve these terms.