ISLAMABAD: The government has constituted a committee to negotiate the draft Framework Agreement between UAE and Pakistan under Inter-Governmental Commercial Transaction Act 2022 for operating Pakistan International Container Terminal (PICT).
The Cabinet Committee on Inter-Governmental Commercial Transactions (CCOIGUI ) also considered the summary of the Ministry of Maritime Affairs about the management of operations of the PICT and was informed that Abu Dhabi Ports (ADP) owned by the Government of the UAE has shown interest in operating the container terminal. The CCoIGT decided to constitute a committee to negotiate the draft Framework Agreement between the UAE and Pakistan, under the Inter-Governmental Commercial Transaction Act 2022, to further strengthen the relations between the two countries in the maritime sector, the statement concluded.
Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar chaired the meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT). Federal Minister for Maritime Affairs Syed Faisal Ali Subzwari, Federal Minister for Power Khuram Dastagir Khan, Federal Minister for Commerce Syed Naveed Qamar, SAPM on Revenue Tariq Pasha, Attorney General of Pakistan, secretary Finance, secretary Maritime Affairs, secretary Law & Justice, and other senior officers attended the meeting.
The committee discussed the proposal that the Pakistan International Container Terminal (PICT) may be taken over by KPT on the expiry of the contract on 17-6-2023. The KPT after taking over the charge of term final considered the requests of the three companies to operate containers terminal during the transition period from June 18, including Multimodal Transport International – (MTI), Premier Mercantile Services (Pvt) Limited and Pakistan International Container Terminal.
The sources said that the KPT took the stance it was not possible to operate the terminal due to a variety of reasons including that the bidding timeframe had already lapsed. It was recommended that in the given circumstances only PICT is in a position to provide management services to keep the terminal operational.
Under section 32 (3) of KPT Act 1886, as amended in 2001 (Bombay Act VI of 1886) empowers the KPT Board to enter into lease concessions, management agreements or other arrangements with outside parties to provide for cargo handling, terminal operation and any other works or services in the port. Therefore, being an operational matter KPT was advised to take further necessary action.
The KPT has now taken over the charge of the Terminal from June I8 and appointed M/s PICT as the service agent of KPT, without charge of any fees, to continue the operation of the terminal till June 30. The KPT has forwarded a draft Framework Agreement for signing between the Government of the United Arab Emirates and the Government of the Islamic Republic of Pakistan to further strengthen the relations between the two countries in the maritime sector.
The draft Framework Agreement submitted by KPT was sent to the Ministry of Foreign Affairs and Law and Justice Division for views/comments and legal vetting. Besides, twp proposals were forwarded before the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) including a committee that may be constituted to negotiate the commercial agreement between KPT and the UAE government and thirdly the negotiation committee may be allowed to negotiate a draft operation, maintenance, investment & development agreement under G2G arrangements with a nominated agency of UAE.
