‘PQA’s reserve fund crosses $700mln’

ISLAMABAD: The Reserve fund of Port Qasim Authority (PQA) has crossed $700 million (Rs110 billion mark) due to strong financial performance of PQA during the last three years, Minister Maritime Affairs Ali Haider Zaidi said.

In his budget speech in the national assembly, the minister added the strong growth in PQA reserves is possible due to hefty profit earned by PQA in last three years and PQA will make a record Rs19 billion net profit this financial year which will be 23 percent higher than last financial year.

Interestingly, out of total PQA reserves of Rs110 billion, Rs43 billion was added during last three years compared to Rs67 billion since PQA inception in 1973.

The minister said PQA has paid Rs8 billion in taxes to federal government during this financial year.

Zaidi said PQA has handled 57 million tonnes this year which was 12 percent higher than last year.

The minister added that he had not allowed sale of a single acre during his tenure and all PQA profits are based on port commercial operations. He said the major reason of not allowing sale of PQA land is that previously PQA land was sold at Rs1.5 crore per acre whereas market price is Rs5 crore.

The minister said JCC will soon approve the second biggest project under China-Pakistan Economic Corridor that will add four new berths at Karachi Port Trust (KPT) and also build an industrial and economic zone near KPT.

The minister said PQA has bought 4 new tug boats and two pilot pilots for $34 million which will end the wasteful expense on rental tug boats at $29,000 per day. And KPT is doing the same. He added that audit was not done in PQA since 2008 and in KPT since 2010 and both are being updated.

Zaidi said fresh evaluation of KPT land stock is being done which is capable of retiring 10-15 percent of our external debt. He said previously KPT land was given at throw away prices to favorites who will then convert it into 99 years lease and earn billions from its sale. He said over Rs600 million has been saved by KPT in different operational expenses and ending pilferage in the last few months.