After the successful transfer of the container terminal, the Pakistani government has taken a decision in principle to hand over the bulk and general cargo terminal at Karachi Port’s East Wharf to Abu Dhabi Ports through a government-to-government deal under the Inter-Governmental Commercial Transaction Act, 2022.
To proceed with this decision, the cabinet committee on intergovernmental commercial transactions (CCoIGCT), led by Finance Minister Ishaq Dar, has allowed negotiations on a framework agreement with the United Arab Emirates (UAE) and has formed a committee to finalize the draft framework agreement with the UAE government.
The committee comprises representatives from the law and maritime affairs ministries, as well as the foreign affairs and finance ministries.
The Ministry of Foreign Affairs (MOFA) forwarded a draft framework agreement and Expression of Interest (EOI) to be signed between AD Port, UAE, and Karachi Port Trust (KPT), Pakistan, for the development of the Bulk and General Cargo Terminal and associated infrastructure at East Wharf Karachi Port.
The KPT board recommended that the Ministry of Maritime Affairs (MOMA) take up the matter further, and the law ministry had no objections and left the decision on administrative aspects to the maritime affairs ministry.
The Inter-Governmental Commercial Transactions Act allows the federal government to enter into agreements with other states for commercial transactions. The cabinet committee has been empowered to authorize negotiations and recommend the approval of agreements with other countries.
Previously, the KPT had handed over the control of the container terminal at East Wharf to AD Ports for 50 years, and now, they plan to proceed with a similar arrangement for the bulk and general cargo terminal.
However, concerns have been raised about the process, as the transfer of the container terminal involved significant financial commitments without independent assessments.