Pakistan to hand over Karachi port to UAE as it raises emergency funds

Pakistan has formed a negotiation committee to finalize a deal with the United Arab Emirates (UAE) to hand over its Karachi port terminals in a bid to raise emergency funds.

The country’s Finance Minister Ishaq Dar chaired a meeting of the Cabinet Committee on Intergovernmental Commercial Transactions on Monday where it was decided that a committee was needed to negotiate a commercial agreement between the Karachi Port Trust (KPT) and the UAE government, The Express Tribune reported.

The negotiation committee has also been permitted to finalize a draft operation, maintenance, investment, and development agreement under the government-to-government arrangements with a nominated agency of the UAE for handing over the Karachi port terminals.

Last year, the coalition government enacted the Intergovernmental Commercial Transactions Act, aimed at selling state assets on a fast-track basis to raise funds.

The country is in dire need of additional money after its deal with the International Monetary Fund (IMF) lapsed.

Initially, the UAE had refused to provide loans to Pakistan and urged it to sell stakes. However, it later committed $1 billion, which is still undisbursed, the Tribune reported.

The deal is expected to be finalized by the end of this month.