Pakistan has accepted a commercial agreement with the United Arab Emirates (UAE) to hand over two more seaport terminals for a period of 25 years.
“The Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) recommended the amended commercial agreement to the Federal Cabinet for approval,” the finance ministry said late last night. The cabinet’s permission to offer the UAE two more terminals would be usual with the approval of its subcommittee, led by Finance Minister Ishaq Dar.
The CCoIGCT meeting determined that the UAE government-owned corporation will pay an additional US$25 million upfront, adjustable against revenue sharing over the next seven years, with US$3 million each year for the first five years and US$5 million annually in the next two years.
With the new ruling, Abu Dhabi (AD) Ports would have exclusive operating and development rights on 85% of the Karachi port’s east wharf.
The concessioner will begin development work on the terminal’s modernization in September 2023.
Previously, the CCoIGCT considered the proposals of the negotiation committee, which met in two sessions on August 8, 2023, to discuss the establishment of a Bulk and General Cargo Terminal at Karachi Port. The meeting was attended by Syed Faisal Ali Sabzwari, Syed Naveed Qamar, Khurram Dastgir Khan, Tariq Bajwa, Tariq Mehmood Pasha, Secretary Maritime Affairs, Secretary Law and Justice, and Chairman KPT.
It is worth noting that just two days before, the same cabinet committee declined to adopt these terms and directed the Price Negotiation Committee (PNC) to seek a higher price.
