In a bid to bolster its financial resources, the Pakistani government is reportedly exploring a strategic collaboration with the United Arab Emirates (UAE) for the management of its vital port terminals in Karachi.
A recent media report suggests that discussions are underway to hand over control of these terminals to the UAE government, with the aim of generating significant revenue. This potential partnership, overseen by a commission led by Finance Minister Ishaq Dar, could mark a turning point for the Karachi Port Trust (KPT) and pave the way for enhanced operations, investments, and expansions.
Under the guidance of Finance Minister Ishaq Dar, the Karachi Port Trust (KPT) and the UAE government set to embark on negotiations to finalize a mutually beneficial commercial agreement. The appointed commission will play a crucial role in shaping the agreement, ensuring that it covers all aspects related to the operation, maintenance, investment, and expansion of the Karachi port terminals. Spearheading the commission as its chairman will be Faisal Sabzwari, the Minister for Marine Affairs, lending his expertise to the process.
Last year, the UAE government expressed its interest in acquiring the Karachi port terminals when they managed by the Pakistan International Containers Facilities (PICT). This recent development reflects the continuation of those discussions and signifies Pakistan’s willingness to explore alternative options for economic growth and stability.
Pakistan’s decision to pursue this collaboration driven by its urgent need for emergency funds. To expedite the process and facilitate the sale of state property, the government is leveraging the Intergovernmental Commercial Transactions Act. This legal framework allows for swift transactions, providing Pakistan with an opportunity to secure much-needed financial resources while bolstering the development and capacity of the Karachi port terminals.