KARACHI: Pakistan on Monday approved a framework agreement for the United Arab Emirates (UAE) to develop a bulk and general cargo terminal at Karachi port, Pakistan’s finance ministry announced on Monday.
Last week, Pakistan had constituted a committee comprising the secretary of law and justice, secretary of maritime affairs and representatives from the ministry of foreign affairs and finance, to negotiate a draft framework agreement with the UAE government to develop the terminal.
The final decision to sign an agreement with the UAE was taken at a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), chaired by Finance Minister Ishaq Dar, on Monday.
“The Committee approved G2G draft Framework Agreement for the ratification of the Federal Cabinet,” the ministry of finance said in statement. “The agreement will be signed between the governments of the UAE and Pakistan.”
The CCoIGCT considered a summary by the Ministry of Maritime Affairs regarding a G2G agreement between the governments of the UAE and Pakistan on cooperation for the development of the terminal at the East Wharf at Karachi Port under an Inter-Governmental Commercial Transaction Act, 2022, according to the ministry.
The development comes as UAE’s Abu Dhabi Ports (AD Ports), a leading port operator, signed a 50-year concession agreement with the Karachi Port Trust (KPT) last month regarding 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.
The joint venture will see 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.