Karachi Port Trust is all set to retire its entire debt liabilities of Rs 1.2 billion of the World Bank and the International Development Agency, but neither the Communication Ministry nor the State Bank of Pakistan (SBP) desires to settle the accounts.
While briefing a select group of newsmen on Thursday at his office Karachi Port Trust Chairman Vice Admiral Ahmed Hayat said that he had written to the ministry more than once seeking its permission to repay loans in one go, but a concurring reply was still awaited.
He said that the KPT had saved Rs 4.2 billion from its net earnings in the last fiscal year and about the same amount in 2001-02.
He said that the KPT had no loan or liability of any kind except the WB loan of Rs 1.041 billion and IDA credit of Rs 161 million.
The KPT wanted to pay the entire amount, but there were procedural blockades that were yet to be removed, he added.
INTEREST RATE ON KPT LOANS: On its loan the KPT pays interest at the rate of 11 percent out of which 3 percent is the share of the State Bank of Pakistan, Finance Ministry takes away 2 percent and the rest goes to the lending agencies.
The entire loan, IBRD Loan No 3335-Pak and IDA Credit No 422-Pak, is to be repaid in instalments in eight years.
The KPT is in a position to pay off this amount in one go, but it seems that the federal government is reluctant to authorise KPT to clear its debts.
It seems odd that not only the WB and the IDA are earning interest on the loan, but the SBP and the Finance Ministry too are getting a cut of 5 percent annually from the KPT's liability.
The KPT chairman did not comment on a question that the government had been clearing loans of foreign donors and wanted to make Pakistan a debt-free country on the one hand, and on the other, it was not giving the KPT permission to pay back its loan.
CARGO VILLAGE: Hayat said that the KPT was planning to set up a cargo village from its own resources, on the pattern of Jabal-i-Ali in the United Arab Emirates, on a 100 acres plot in the Mauripur area popularly known as Machchhar Colony. The project primarily will have bonded warehouses among other modern facilities needed for such a village.
The proposed cargo village would be an additional input towards the improvement of the national economy. It will have a direct access road to the KPT.
The project is estimated to cost $ 250 million and would be completed in three years. It will be connected with both the sides of the port with bridges.
Provision for its connection with Lyari Expressway would also be incorporated in the village plan.
Consultants Engineering Associates of Pakistan and an American firm would jointly carryout the initial studies and prepare the plan for which work order has been placed.
CARGO HANDLING: The KPT chairman said that the KPT was handling 66 percent cargo, dry and wet, and the rest goes to Port Qasim.
He said that there was significant increase in the cargo and it was increasing steadily. This was an indication of improvement in the national economy, he added.
Hayat said that he would welcome more private participation in the port activities as requests for additional berths were being received from the cargo handlers.
He said that the KPT, which had 30 dry cargo and three liquid cargo berths, intended to give four berths to private sector for handling bulk dry cargo, following which about 90 percent of the dry cargo would go to the private sector.
Already three berths at the port are with the Karachi International Container Terminal (KICT) and four with Pakistan International Container Terminal (PICT).
The KICT has asked for additional berths. The KPT has sent the proposal to its board for approval. Of the three liquid cargo berths one is under construction.
DREDGING: To a question, Hayat said that deep dredging of channels would be taken up at a capital cost of Rs 3 billion. It will increase draught depth from the existing 12.5 meters to 13.5 meters.
The KPT has five sets of dredging equipment and always carries out its work, not exceeding 2 mcm, on its own.
He said that the proposed dredging would involve about 8 mcm work, therefore, tenders had been floated and Techno-Waligford, a half-Pakistani and half-American team, had qualified for the initial study.
The initial study would take about four months and the completion of the entire dredging would be completed in 15 months. The channel would become 12.5 kilometres from the existing 11.5 kilometres in length.
OIL PIER-2: The Oil Pier-2 project would be taken up at the cost of Rs 1.5 billion. The oil jetty will have a 14.3 meter draught. It would increase the port's handling capacity to ships of 90,000 tonnes DWT. The completion of this pier would boost the national economy, reduce freight cost of oil and encourage big ships to come in. The NMB wharf was also being constructed at a cost of Rs 500 million, he added.
Hayat said that the KPT was involved in development projects of miscellaneous nature worth Rs 10 billion. These would be completed in two to three years.
It will include reconstruction of M. A. Jinnah Road connecting Keamari, renovation of the PIDC Bridge to the Jinnah Bridge fly-over and construction of a road from Mai Kolachi to Sub Marine Chowk. The KPT would also take up Hino-Pak fly-over project.
Hayat said that all provisions for civic facilities would be taken care of. These constructions would be of international standard.
Golden handshake: Hayat said that a voluntary golden handshake scheme had been prepared for the employees of KPT. It would be announced soon.
He said that the scheme had very attractive features and would be entirely voluntary in nature.
At an average an employee would get Rs 1.5 million. At present, the KPT has 8,515 people at its pay role.
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