By Staff Reporter
ISLAMABAD: Pakistan plans to sell the bulk and general cargo terminal at Karachi Port’s East Wharf to Abu Dhabi Ports, the second such deal in less than a year, as the cash-strapped nation seeks to raise funds and improve its infrastructure.
The cabinet committee on inter-governmental commercial transactions, headed by Finance Minister Ishaq Dar, approved the negotiations on a framework agreement with the United Arab Emirates on Wednesday, according to a statement from the Ministry of Maritime Affairs.
A committee of senior officials will finalize the draft agreement with the UAE government.
The deal is expected to bring in foreign investment and modernize the port facilities, the statement said. The terminal handles about 12 million tons of cargo annually, including coal, cement, clinker, wheat, sugar and fertilizer, according to the Karachi Port Trust website.
The agreement will be signed under the Inter-Governmental Commercial Transactions Act, 2022, which allows the government to enter into commercial deals with other states without competitive bidding.
Last year, Pakistan handed over the control of the container terminal at East Wharf to Abu Dhabi Ports for 50 years for an upfront payment of $50 million and a commitment to invest $102 million in five years. The deal also included a royalty of $18 million and an annual rent of Rs1,100 rupees per square meter.
Pakistan is facing a fiscal crunch as it struggles to revive its economy amid years of economic mismanagement.
The government has also been seeking to sell stakes in state-owned enterprises, such as Pakistan Steel Mills and Pakistan International Airlines, to reduce losses and debt.
The International Monetary Fund (IMF) and other lenders have urged the government to privatize or restructure these entities, which pose a fiscal risk and drain public resources.
Prime Minister Shehbaz Sharif on Wednesday also ordered a priority review of the reforms of state-owned enterprises (SOEs) that are bleeding the country’s finances.
Sharif chaired a meeting to assess the progress of the ongoing reforms in various SOEs and corporations, according to a statement from his office. He was briefed on the steps taken to improve the governance, efficiency and performance of these institutions, which include involving experts on their boards and outsourcing some services to the private sector.
The prime minister stressed the need for transparency and accountability in the reform process and said the government will ensure that the next caretaker government, which will take over before the general elections due next year, continues the policies of national interest.
“We are making all efforts to maintain the continuity of national development,” Sharif said. “We are taking steps to ensure the improvement of institutions of international standard and to provide best facilities to the people.”
Copyright © 2021 Independent Pakistan | All rights reserved
