The Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) on Thursday recommended the commercial agreement between AD Ports Group of United Arab Emirates (UAE) and Karachi Port Trust (KPT) for approval of the Federal Cabinet.
As per a statement released by the Finance Division, Finance Minister Ishaq Dar chaired the meeting of the CCoIGCT today.
During the meeting, the CCoIGCT considered a summary of Ministry of Maritime Affairs regarding recommendations of the negotiation committee on the commercial agreement to be signed between KPT and AD Ports UAE.
“It was informed that the negotiation committee constituted by CCoIGCT, held its meetings on 19th ,20th and 21st June, 2023 under the chairmanship of the Minister for Maritime Affairs and negotiated the commercial agreement for acquiring operation, maintenance and development rights of the Container Terminal by the AD Ports UAE.
“The CCoIGCT after detailed discussion and comparative evaluating the ToRs, recommended the commercial agreement for approval of the Federal Cabinet,” read the statement.
AD Ports Group is a UAE Government owned entity and the leading maritime and logistics provider from the Middle East.
The group has offered a 50-year concession agreement with KPT.
As per a statement, under the terms of the concession agreement, a Joint Venture - Karachi Gateway Terminal Limited (KGTL) will handle a container terminal at Karachi Port’s east wharf.
“The agreement falls under AD Ports Group’s strategy to invest in critical maritime trade routes for the UAE and to replicate Abu Dhabi’s successful growth prospects.
“The agreement has the potential to boost the UAE- Pakistan bilateral relations and the Pakistan economy and strengthen trade ties with key trading nations, leading to increased economic growth and prosperity,” read the statement.
Last month, AD Ports Group signed a Memorandum of Understanding (MoU) with the KPT.
The MoU encompassed a wide range of initiatives and projects aimed at enhancing port infrastructure, optimizing operational efficiencies, and embracing digitalization.
Federal Minister for Maritime Affairs Syed Faisal Ali Subzwari, Federal Minister for Commerce Syed Naveed Qamar, Minister of State for Petroleum Musadik Masood Malik, SAPM on Finance Tariq Bajwa, Attorney General of Pakistan, Secretary Finance, Secretary Maritime Affairs, Secretary Law & Justice, and other senior officers attended the meeting on Thursday.
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