As the Pakistani government seeks to raise funds, it is mulling handing over its Karachi port terminals to the UAE.
According to a report by The Express Tribune Daily, a panel will be established to negotiate a commercial agreement between the Karachi Port Trust (KPT) and the government of the UAE. The panel has reportedly been given permission to complete a draught operation, maintenance, investment, and development agreement as part of the government-to-government agreements. The agreement would be negotiated with a UAE-designated agency for the transfer of the Karachi port terminals.
Faisal Sabzwari, the minister for maritime affairs, will serve as the panel’s chairman. Additional secretary of finance and international affairs, PM Jehanzeb Khan’s personal assistant, the chairman of the KPT, and general managers of the KPT are also on the panel.
How Did This Deal Happen
Last year, the Pakistan International Containers Terminals (PICT), which has administrative responsibility over the Karachi port terminals, expressed interest in selling them to the UAE government. According to a law passed last year, this action is intended to raise emergency money. The Intergovernmental Commercial Transactions Act, passed by Pakistan’s coalition government last year, aims to sell public assets quickly in order to raise money.
Given the uncertainty around the $6.5 billion agreement with the International Monetary Fund (IMF) originally inked in 2019 and due to expire at the end of this month, Pakistan is currently in financial trouble. To gain support for the resumption of the delayed negotiations, Prime Minister Shehbaz Sharif met with the ambassadors of important nations in the meanwhile. This sale is likely to provide some interim relief.
