KARACHI: Pakistan on Wednesday constituted a committee to negotiate a draft framework agreement with the UAE government to develop a Bulk and General Cargo Terminal at the Karachi port, the finance ministry said.  

The decision was taken during a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) chaired by Finance Minister Ishaq Dar.  

“The CCoIGCT considered summary of Ministry of Maritime Affairs regarding G2G agreement between the Governments of UAE & Pakistan on Cooperation for the Development of Bulk and General Cargo Terminal at East Wharf at Karachi Port Trust (KPT) under Inter-Governmental Commercial Transaction Act, 2022,” the ministry said in a statement issued after the meeting.  

The CCoIGCT after detailed discussions, allowed negotiations on framework agreement and constituted a committee comprising the secretary of law and justice, secretary of maritime affairs, representatives from the ministry of foreign affairs and finance to negotiate the draft framework agreement with the UAE government, the finance ministry said. 

The development takes place after the 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, with AD Ports Group as the majority shareholder, will see an investment of $220 million in Pakistan over the first 10 years. 

Though no further details of the Bulk and General Cargo Terminal's development are available, shipping experts termed the development a positive one for the South Asian nation’s maritime sector. 

“The UAE's investment in the maritime sector of Pakistan will bring expertise and knowledge, ” Muhammad Ali Rajpar, a shipping expert, told Arab News.  

“Apart from money, this will bring with it knowledge, technology, and bring connectivity. This is a very positive development for Pakistan’s maritime sector.”     

The agreement is expected to boost Pakistan-UAE bilateral relations and strengthen trade ties with key nations, leading to an increased economic growth and prosperity for Pakistan.