Pakistan forms committee to frame agreement with UAE to develop terminal at Karachi port

Shipping containers are seen stacked on a ship at a sea port in Karachi on April 6, 2023. (AFP/File)
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Updated 03 August 2023
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Pakistan forms committee to frame agreement with UAE to develop terminal at Karachi port

  • UAE’s Abu Dhabi Ports signed a 50-year concession agreement with Karachi Port Trust last month
  • Joint venture with AD Ports Group will see an investment of $220 million in Pakistan over 10 years

Islamabad: Pakistan on Thursday constituted a committee to negotiate and frame a commercial agreement between the nominated agencies of the UAE and Pakistan to develop a Bulk and General Cargo Terminal at the Karachi port, the finance ministry said.

In June, the UAE’s Abu Dhabi Ports (AD Ports), a leading port operator, signed a 50-year concession agreement with the Karachi Port Trust (KPT) over 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.  

On Thursday, the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) considered a summary regarding the commercial agreement between AD Ports and KPT for outsourcing operations at the port. 

"The CCoIGCT after discussion approved the Price Discovery Mechanism in the light of the discussion," a statement from the finance ministry said. "And constituted a committee to negotiate and frame a commercial agreement to be signed between the nominated agencies of the UAE and Pakistan for the development of Bulk and General Cargo Terminal at West Wharf, Karachi Port."

The joint venture between AD Ports Group and Kaheel Terminals is expected to generate 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.


Pakistan FM discusses regional situation with Saudi counterpart, urges restraint and dialogue

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Pakistan FM discusses regional situation with Saudi counterpart, urges restraint and dialogue

  • This is the second time the two foreign ministers have spoken since the Arab Coalition targeted weapon shipments on Yemen’s Mukalla port
  • Saudi Arabia’s foreign ministry has invited factions in south Yemen to hold a dialogue in Riyadh to ‘discuss just solutions to southern cause’

ISLAMABAD: Pakistan’s foreign minister, Ishaq Dar, discussed the regional situation with his Saudi counterpart, Prince Faisal bin Farhan, and called for restraint and dialogue to resolve issues, the Pakistani foreign office said late Friday, amid tensions prevailing over Yemen.

This is the second time the two foreign ministers have spoken this week since the Saudi Arabia-led Coalition to Support Legitimacy in Yemen carried out a “limited” airstrike on Dec. 30, targeting two shipments of smuggled weapons and military equipment sent from the Emirati port of Fujairah to Mukalla in southern Yemen.

A coalition forces spokesperson said the weapons were meant to support the Southern Transitional Council (STC) forces, backed by the United Arab Emirates (UAE), in Yemen’s Hadramaut and Al-Mahra “with the aim of fueling the conflict.” The UAE has since announced withdrawal of its remaining troops from Yemen, rejecting any actions that could threaten the Kingdom or undermine regional stability.

In their telephonic conversation late Friday, the Pakistani and Saudi foreign ministers discussed the latest situation in the region, according to the Pakistani foreign office.

“FM [Dar] stressed that all concerned in the region must avoid any escalatory move and advised to resolve the issues through dialogue and diplomacy for the sake of regional peace and stability,” it added.

Separately, Saudi Arabia’s foreign ministry invited factions in south Yemen to hold a dialogue in Riyadh to “discuss just solutions to the southern cause.”

The ministry statement said the conference in the Saudi capital had been requested by Rashad Al-Alimi, President of the Yemeni Presidential Leadership Council, and the Kingdom urged all factions to participate “to develop a comprehensive vision” that would fulfill the aspirations of the southern people.

Disregarding previous agreements with the Arab Coalition, the STC separatist group launched a sweeping military campaign early in December, seizing the governorates of Hadramaut along the Saudi border and the eastern governorate of Al-Mahra in Yemen’s border with Oman. It also took control of the strategic PetroMasila oilfields, which account for a massive portion of Yemen’s remaining oil wealth.

The advance has raised the spectre of the return of South Yemen, a separate state from 1967 to 1990, while dealing a hammer-blow to slow-moving peace negotiations with Iran-backed Houthi rebels.

Saudi Arabia said the STC action poses a direct threat to the Kingdom’s national security, and regional stability. The Kingdom has reiterated the only way to bring the southern cause to a resolution is through dialogue.

On Thursday, Pakistan’s foreign office expressed solidarity with Saudi Arabia and reaffirmed Islamabad’s commitment to the Kingdom’s security, amid rising tensions in Yemen.

“Pakistan expresses complete solidarity with the Kingdom of Saudi Arabia and reaffirms its commitment to security of the Kingdom,” Pakistani foreign office spokesperson Tahir Andrabi told reporters at a weekly news briefing.

“Pakistan maintains its firm support for the resolution of Yemen issue through dialogue and diplomacy and hopes that Yemen’s people and regional powers work together toward inclusive and enduring settlement of the issue, safeguarding regional stability.”

Pakistan and Saudi Arabia signed a landmark defense pact in September last year, according to which aggression against one country will be treated as an attack against both. The pact signaled a push by both governments to formalize long-standing military ties into a binding security commitment.