Cabinet panel okays talks with UAE on cargo terminal

ISLAMABAD: The government has authorised negotiation on a framework agreement between Pakistan and the UAE on cooperation for the development of a Bulk and General Cargo Terminal at East Wharf, Karachi Port Trust (KPT).

Top official sources told The News on Wednesday that AD Port of the United Arab Emirates and Karachi Port Trust, Government of the Islamic Republic of Pakistan, were negotiating for the development of a Bulk and General Cargo Terminal and developing associated infrastructure at East Wharf, Karachi Port.

The draft agreement was received by Pakistani authorities and the KPT Board considered it and forwarded it to the Ministry of Maritime Affairs. After detailed discussions within the ministries, it was agreed that in terms of Section-3 of the Inter-Governmental Commercial Transactions Act, 2022, “the Federal Government may enter into a G2G agreement with the government of a foreign state for the purposes of this Act”, which shall include broad parameter and mechanism for execution of the intended commercial transaction. 

The Cabinet Division, under Section 4 of the Act ibid, constituted Inter-Governmental Commercial Transactions (CCoIGCT) mandated to authorise negotiations for a G2G agreement between the federal government and the government of a foreign state, constitute committees and recommend approval of the G2G agreement to the cabinet.

The Cabinet Committee on CCoIGCT was requested to authorise negotiation on the framework agreement. It was also requested to constitute a committee to negotiate the draft Framework Agreement with the UAE vetted by the Law & Justice Division and Ministry of Foreign Affairs.

A separate committee has also been constituted to negotiate the price discovery mechanism in the light of commercial agreement to be signed between KPT and the AD Port, UAE.