As Pakistan is struggling with record inflation, fiscal imbalances and crucial levels of reserves is mulling handing over the Karachi port terminals to United Arab Emirates (UAE).
Karachi: If reports are to be believed, Pakistan is mulling handing over the Karachi port terminals to United Arab Emirates (UAE). A committee was formed on Monday to ratify the agreement, according to the Pakistani newspaper The Express Tribune. The plan to give over Karachi Port looks to be the first intergovernmental transaction under a law passed last year to obtain emergency funds.
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The South Asian country is struggling with record inflation, fiscal imbalances, and crucial levels of reserves. The Cabinet Committee on Inter-Governmental Commercial Transactions met on Monday under the leadership of Finance Minister Ishaq Dar to discuss the specifics of the transaction. It was determined to form a committee to negotiate a business deal between the Karachi Port Trust (KPT) and the government of the UAE.
According to local media reports, the officials' decision stated that the committee would finalise a draft operation, maintenance, investment, and development deal under government-to-government agreements with a UAE agency of their choosing.
With Abu Dhabi Ports (ADP), a division of the Abu Dhabi Ports Group, Pakistan hopes to seal the deal. According to media sources, the UAE-based group has expressed interest in KPT.
According to the group, Abu Dhabi Ports owns and runs 10 ports and terminals in the United Arab Emirates. Each site, according to the statement, is strategically positioned, utilising connectivity via the sea, air, road, and rail to serve as a gateway to international markets.
The coalition government in Pakistan passed the Intergovernmental Commercial Transactions Act last year. In order to raise money, it plans to sell public assets quickly. After its agreement with the International Monetary Fund expired, the nation is in desperate need of new funding.