During a Cabinet Committee on Inter-Governmental Commercial Transactions(CCoIGCT) meeting, chaired by the caretaker prime minister, a decision wasmade to seek federal cabinet approval for outsourcing the operations of theCargo Terminal East Wharf at Karachi Port to a UAE port.
The Ministry of Maritime Affairs presented a proposal regarding theoutsourcing of operations at the Bulk and General Cargo Terminal East Wharfin Karachi Port during the CCoIGCT meeting.
The secretary of Maritime Affairs provided an overview of the port terminaloutsourcing process and discussed prior decisions made by the CCoIGCT onthis matter.
It was conveyed during the meeting that the previous decisions of theCCoIGCT from the meeting dated 09-08-2023 were not ratified by the thenCabinet due to its dissolution.
Following discussions, the CCoIGCT decided to submit the recommendationsfrom the previous meeting on 09-08-2023 to the current federal cabinet forconsideration and approval.
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During the CCoIGCT meeting on 9th August 2023, the recommendations of thenegotiation committee, which had two sessions on 8th August 2023 to developthe Bulk and General Cargo Terminal at Karachi Port, were reviewed.
The committee at that time approved these recommendations, with thecondition that the concessioner would make a non-refundable/non-adjustableupfront payment of US$25 million as goodwill.
Additionally, the UAE government-owned firm would make another upfrontpayment of US$25 million, which would be adjustable against revenue sharingover the next seven years, with US$3 million per annum for the first fiveyears and US$5 million each in the subsequent two years
