Islamabad August 10 2023: Pakistan seeks amount of USD 50 million from UAE firm for handing over of operations of Karachi port berths along with conditionality of upgrading the infrastructure.
Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar chaired the meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), yesterday.
The CCoIGCT reviewed the recommendations of the negotiation committee which held its deliberation in two sessions on 8th August, 2023, for the development of Bulk and General Cargo Terminal, at Karachi Port.
The Committee approved the recommendations of the negotiating committee subject to conditions that the concessioner will pay USD$ 25 million non-refundable / non-adjustable upfront as a goodwill. The UAE government owned firm will pay another US$25 million upfront adjustable against revenue sharing in next 7 years with USD $3 million/annum for first 5 years and USD 5 million each in next two years.
In order to modernize the terminal, the Concessioner will start development work from September, 2023.It was also decided that all liabilities regarding KDLB will be the responsibility of AD Ports. The Committee recommended the commercial agreement as amended to the Federal Cabinet for its approval.
Federal Minister for Maritime Affairs Syed Faisal Ali Subzwari, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, SAPM on Finance Mr. Tariq Bajwa, SAPM on Revenue Mr. Tariq Mehmood Pahsa, Secretary Maritime Affairs, Secretary Law & Justice, Chairman KPT and team and other senior officers attended the meeting.
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