- The country is in dire need of additional funds
- This step was taken to raise emergency funds
- Faisal will head the Sabjawari Mantrana Committee
Economically beleaguered Pakistan has formed a negotiating committee to finalize a deal with the United Arab Emirates to hand over the Karachi port terminal. The Express Tribune reported that the move could be the first inter-governmental transaction under the law enacted last year to mobilize emergency funds.
The Finance Minister chaired the meeting of the Cabinet Committee
Finance Minister Ishaq Dar chaired the meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions. According to the decision, the Cabinet Committee has decided to form a committee to negotiate a commercial agreement between the Karachi Port Trust and the UAE government. The negotiating committee has also been authorized to finalize the draft operation, maintenance, investment and development agreement under the government’s arrangement with the designated UAE agency to hand over the Karachi port terminal.
Faisal will head the Sabjawari Mantrana Committee
The constituted negotiating committee will be headed by Maritime Affairs Minister Faisal Sabjawari. The members of the committee include Additional Secretary for Finance and External Affairs, Special Assistant to the Prime Minister Jahanzeb Khan, Chairman of Karachi Port Terminal (KPT) and General Manager of KPT. Pakistan is aiming to sign an agreement to hand over the terminals to Abu Dhabi Ports (ADP), a subsidiary of Abu Dhabi Ports Group.
The Express Tribune reported that the UAE government had last year expressed interest in acquiring Karachi Port Terminals under the administrative control of Pakistan International Container Terminals (PICT). Abu Dhabi Ports, part of the AD Ports Group, owns or operates 10 ports and terminals in the UAE. Last year, the coalition government enacted the Inter-Governmental Commercial Transactions Act, which aimed to sell state assets on a fast-track basis to raise funds. The country is in dire need of additional funds after the deal with the International Monetary Fund expires.
Held meeting with ambassadors of major countries
Meanwhile, Prime Minister Shahbaz Sharif held a meeting with ambassadors of major countries to seek support for restarting the stalled IMF deal. The government is making a last-ditch effort to get the unpaid portion of the USD 6.5 billion package.
Invited ambassadors of many countries
The government on Monday invited ambassadors from the United States, the United Kingdom, France, Germany, the European Union, Japan, China, Saudi Arabia, Qatar and the United Arab Emirates. A participant in the meeting, who did not want to be named, said the prime minister had apprised foreign ambassadors of the efforts made by finance minister Dar and that he had personally informed them over the past few months.
Sources said the prime minister reiterated that the government was keen to get an IMF loan tranche of at least USD 1.2 billion out of the remaining USD 2.6 billion pending completion of the 9th review of the programme.
