Karachi: Federal Minister for Maritime Affairs, Faisal Sabzwari, announced that a contract worth $500 million is being negotiated with gulf countries, including Abu Dhabi. The intergovernmental agreement policy has been formulated and will be submitted to the Law Ministry today. If approved, it will pave the way for direct foreign investment as per the conditions set by the International Monetary Fund (IMF). These remarks were made during his speech at an event organized by the Korangi Association of Trade and Industry (KATI).

Prominent personalities present at the event included the President of KATI, Faraz-ur-Rehman, Deputy Patron-in-Chief Zubair Chayya, Senator Abdul Haseeb Khan, Senior Vice President Nighat Awan, Vice President Muslim Mohammadi, Chairman Port Qasim Authority Rear Admiral (Retd.) Nasir Shah, CEO KITE  Limited Zahid Saeed, Former President Masood Naqi, Gulzar Feroz, Johat Qandhari, Danish Khan, Sheikh Umar Rehan, Syed Farooq Mazhar, and Administrator Korangi, Muhammad Sharif Khan.

The Federal Minister for Maritime Affairs further stated that Pakistan and the United Arab Emirates are working under the G2G (government-to-government) agreement, and work is underway on three projects, including Bulk Terminals. He said that 1,250 acres of industrial parks would be established in Port Qasim, where foreign investors interested in industrial parks would be provided facilities.

He mentioned that there have been no increases in tariff charges at the port, digitalization has not been implemented, restrictions on leases have been imposed, and a loan of $102 million has been taken from the World Bank, which has significantly limited KPT's financial resources. He added that terminal charges have now been increased from 60 cents to 80 cents, resulting in a marginal increase of only 1.5% in the cost of production for industrialists. He mentioned that a maritime vessel is being added to the Karachi port fleet to transport edible oil. It is desired that KPT should have a better presence with 42 maritime vessels.

The federal minister also announced approval for establishing a beach wall at Karachi Fish Harbor for tourism and recreational purposes. He said that instructions have also been issued to prepare a lab for marine fisheries.

Earlier, President KATI Faraz-ur-Rehman welcomed the Federal Minister to KATI and emphasized the need for regulating shipping companies. He proposed the implementation of a system for demurrage charges and penalties that would be based on the value of the container. He suggested that the demurrage charges system should be made available online, similar to the booking system WEBOC for shipping. President KATI highlighted that in the past initiatives were taken to improve the infrastructure of Karachi, including the funds provided by railway, steel mills, and other sectors, and called for further funding from the KPT.

Published in The Daily National Courier, May, 29 2023

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