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UAE and Pakistan to develop cargo terminal in Karachi  

Port karachi Reuters/Akhtar Soomro
Crew members check the deck of the Russian oil cargo Pure Point, carrying crude oil, anchored at a port in Karachi

The UAE and Pakistan will sign an agreement to develop a bulk and general cargo terminal at East Wharf, Karachi Port.

Pakistan has set up a negotiation committee last week to finalise a deal with the UAE, giving Dubai 85 percent control over the East Wharf of the seaport, The Express Tribune reported.

The cabinet committee on intergovernmental commercial transactions decided to go for a government-to-government deal as it dropped plans for a competitive bidding process, it said.

The Pakistani government will set up a price negotiation committee once the draft framework agreement is finalised.

The agreement is expected to be signed by the first week of August, the newspaper quoted an unnamed senior government official as saying.

In June, Abu Dhabi Ports Group said it would invest $220 million over the next decade to upgrade infrastructure at Karachi Port after signing a 50-year concession agreement with Pakistan’s Karachi Port Trust.

AD Ports Group and UAE-based Kaheel Terminals have formed a joint venture to manage, operate and develop the Karachi Gateway Terminal at Karachi Port’s East Wharf. 

Earlier this month, the UAE deposited $1 billion in Pakistan’s central bank, finance minister Ishaq Dar said.

“This inflow has further increased forex reserves held by State Bank of Pakistan and will accordingly be reflected in the forex reserves position for the week ending,” he said in a tweet.

The IMF’s board recently approved a $3 billion bailout programme for Pakistan and will immediately disburse the first tranche of $1.2 billion.