Karachi port: Govt to lease four out of 33 berths to UAE for $220m

According to the firm, AD Ports Group of the United Arab Emirates (UAE) reached an agreement Thursday to take over the operation of a portion of the main Karachi docking facility in a deal worth an immediate $220 million.

The agreement will be a lifeline for Pakistan, whose economy is on the verge of collapse and the government is desperate for large-scale foreign investment to help discharge severe debt.

AD Ports Group has formed a joint venture with another UAE company, Kaheel Terminals, to take over berths from the state-owned handling agency Karachi Port Trust (KPT).

The majority of construction is scheduled for 2026.

The UAE is a key contributor to the Pakistani economy through grants, loans, and direct investment, and has previously bailed out a government that had been on the verge of defaulting on its debt for months.