Pakistan has established a committee to negotiate a deal with the United Arab Emirates (UAE) to hand over its Karachi port terminals to raise emergency finances.
The decision to transfer control of Karachi Port is the first intergovernmental transaction authorized by a law passed last year to collect emergency funds as the country struggles with record inflation, fiscal imbalances, and low reserves.
During a meeting of the Cabinet Committee on Intergovernmental Commercial Transactions on Monday, which was presided over by the country’s finance minister Ishaq Dar, it was decided that a committee would be required to negotiate a commercial agreement between the Karachi Port Trust (KPT) and the government of the United Arab Emirates, Express Tribune reported.
The negotiation committee has also been permitted to complete a draft operation, maintenance, investment, and development agreement under the government-to-government agreements with an organization designated by the UAE to transfer the Karachi port terminals.
Following the expiration of its agreement with the International Monetary Fund (IMF), the country urgently needs extra funding.
At first, the UAE had resisted giving Pakistan credit and had pressured it to sell shares. The Tribune said it later pledged $1 billion, which has yet to be disbursed.
By the end of this month, the agreement is expected to be completed.
