The Cabinet Committee on Inter-Governmental Commercial Transactions reviewed the progress of the negotiation committee on the commercial agreement between KPT and AD Ports UAE for the development of Bulk and General Cargo Terminal at East Wharf, Karachi Port.
The Finance Minister Senator Mohammad Ishaq Dar chaired meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) today, which was attended by Federal Ministers, Secretaries and senior Govt and KPT officials.
The Committee directed the negotiation committee to re-engage with AD Ports UAE to re-negotiate to improve the terms offered by AD Ports.
The Government on Thursday constituted a committee to negotiate and frame a commercial agreement between the nominated agencies of the UAE and Pakistan to develop a Bulk and General Cargo Terminal at the Karachi port, the finance ministry said.
The UAE media reports that In June, the UAE’s Abu Dhabi Ports (AD Ports), a leading port operator, signed a 50-year concession agreement with the Karachi Port Trust (KPT) over the handling of one of its port terminals in Karachi.
Under the agreement, the Pakistan International Container Terminal (PICT) has been handed over to a joint venture (JV) between AD Ports Group, a majority shareholder, and Kaheel Terminals, a UAE-based company, formed to manage, operate and develop the Karachi Gateway Terminal Limited (KGTL) at berths 6-9 at Karachi Port’s East Wharf.
On Thursday, the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) considered a summary regarding the commercial agreement between AD Ports and KPT for outsourcing operations at the port.
“The CCoIGCT after discussion approved the Price Discovery Mechanism in the light of the discussion,” a statement from the finance ministry said. “And constituted a committee to negotiate and frame a commercial agreement to be signed between the nominated agencies of the UAE and Pakistan for the development of Bulk and General Cargo Terminal at West Wharf, Karachi Port.”
The joint venture between AD Ports Group and Kaheel Terminals is expected to generate an investment of $220 million in Pakistan over the first 10 years.
The agreement is expected to boost Pakistan-UAE bilateral relations and strengthen trade ties with key nations, leading to increased economic growth for Pakistan.
