Islamabad, 21 June, 2023 (GNP): The government of Pakistan formed a negotiation committee to settle a deal with the United Arab Emirates (UAE) to hand over the Karachi port terminals on Monday.
This step has the potential to mark the first intergovernmental transaction authorized by a law passed to increase emergency funds last year.
Finance Minister Ishaq Dar held the Cabinet Committee meeting on Inter-Governmental Commercial Transactions. The cabinet committee agreed to construct a committee for negotiating a commercial agreement between the Karachi Port Trust (KPT) and the government of UAE.
According to the decision of the cabinet committee, the negotiation committee will finalize the draft operation, maintenance, investment, and development of the agreement under the government-to-government arrangements.
Also, the committee will work with a nominated agency from the UAE for handing over the terminals of Karachi Port. The negotiation committee will be led by the Minister for Maritime Affairs, Faisal Sabzwari.
The committee members include the additional secretaries of Finance and Foreign Affairs, the special assistant to Prime Minister Jehanzeb Khan, the Chairman of the Karachi Port Terminal (KPT), and the general managers of the KPT.
According to the sources, Pakistan seeks to sign a deal to hand over the terminals to Abu Dhabi Ports (ADP), a subsidiary of the Abu Dhabi Ports Group.
Moreover, Abu Dhabi Ports, part of AD Ports Group, possess 10 ports and terminals in the UAE.
Since the deal with the International Monetary Fund (IMF) is set to expire by the end of this month, Pakistan is in desperate need of additional money.