Pakistan to hand over Karachi port to UAE to raise emergency funds

Pakistan is apparently planning to hand over the Karachi port terminals to the United Arab Emirates (UAE). Pakistan-based The Express Tribune reported that a committee was set up on Monday to finalise thedeal.

The South Asian nation is grappling with record inflation, fiscal imbalances and critical levels of reserves and the move to hand over Karachi port appears to be the first intergovernmental transaction under a law enacted last year to raise emergency funds.

A meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions was chaired by finance minister Ishaq Dar on Monday to discuss the details of the deal.

Add WION as a Preferred Source

In the meeting, it was decided to set up a committee to negotiate a commercial agreement between the Karachi Port Trust (KPT) and the UAE government.

As reported by local media outlets, the decision taken by the officials noted that the committee will finalise a draft operation, maintenance, investment, and development agreement under the government-to-government arrangements, with a nominated agency of the UAE.

Faisal Sabzwari, who is the Minister for Maritime Affairs, will head the negotiation committee, that will finalise a framework agreement. The additional secretaries of Finance and Foreign Affairs, the special assistant to PM Jehanzeb Khan, the Chairman and the general managers of the KPT are members of the committee.

Pakistan wants to finalise the deal with Abu Dhabi Ports (ADP), which is a subsidiary of the Abu Dhabi Ports Group. The UAE-based group showed interest in KPT recently, media reports suggest.

The group said that Abu Dhabi Ports owns and operates 10 ports and terminals in the UAE. It says that each facility is strategically located, harnessing sea, air, road and rail connectivity to provide gateways to global markets.

Watch:Former Pakistan PM Imran Khan interacts with WION

Intergovernmental Commercial Transactions Act

The Intergovernmental Commercial Transactions Act was enacted by Pakistan's coalition government last year. It aims at selling state assets on a fast-track basis to raise funds.

Earlier this month, Pakistan's finance minister said that the nation is working on the possibility of restructuring its bilateral debt regardless of whether it successfully completes its IMF review.

After releasing the budget for the 2023-24 financial year, Ishaq Dar told reporters that "We'll see how things go". He referred to whether to restructure or reprofile debt as Pakistan continues to speak with the IMF about its stalled bailout funds.

Dar added, "In either case, we will talk to bilateral creditors."

Pakistan is struggling to finalise an agreement with the lender as its IMF programme runs out this month with about $2.5 billion in funds yet to be released.

Meanwhile, Prime Minister Shehbaz Sharif held a meeting with the ambassadors of key countries to get support for the revival of the deal.

(With inputs from agencies)

WATCH WION LIVE HERE

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.