Staff Report
ISLAMABAD: The Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) is set to convene today (19th July 2023) under the chairmanship of the Minister for Finance and Revenue to discuss a significant agenda item titled ‘G2G Framework Agreement Between the Government of UAE and Pakistan on Cooperation for the Development of Bulk and General Cargo Terminal at East Wharf at Karachi Port Trust’.
The Ministry of Maritime Affairs (MoMA) has forwarded a draft Framework Agreement and Expression of Interest (EOI) to be signed between the AD Port of the United Arab Emirates and the Karachi Port Trust (KPT) in Pakistan for the development of a Bulk and General Cargo Terminal and the associated infrastructure at East Wharf, Karachi Port.
The draft Framework Agreement, received from the Ministry of Foreign Affairs (MoFA), was examined by the KPT, which provided its comments and directed the management to inform the Ministry of Maritime Affairs to proceed with the matter in accordance with prevailing laws.
Simultaneously, the draft Framework Agreement was sent to the Ministry of Foreign Affairs and the Law and Justice Division for their views, comments, and legal vetting. The Law and Justice Division stated that the administrative decision regarding the matter should be taken by the MoMA from a policy perspective, and no specific legal questions have been raised that require the division’s response. However, the division expressed its willingness to provide necessary assistance if any specific legal issues arise.
The Inter-Governmental Commercial Transaction Act, 2022, empowers the Federal Government to enter into a Government-to-Government (G2G) agreement with a foreign state. The act includes provisions for negotiating and approving such agreements, and it mandates the CCoIGCT to authorize negotiations for G2G agreements, constitute committees, and recommend approval of the agreements to the Cabinet.
In light of the above, the proposed actions are as follows:
- The CCoIGCT will authorize negotiations on the Framework Agreement.
- A committee will be constituted to negotiate the draft Framework Agreement with the United Arab Emirates, with the involvement of the Law and Justice Division and the Ministry of Foreign Affairs.
iii. Another committee will be formed to negotiate the price discovery mechanism for the commercial agreement to be signed between the Karachi Port Trust and the AD Port UAE.
The Minister for Maritime Affairs has reviewed and approved the submission of the summary to the CCoIGCT.
The meeting holds great significance as it will shape the future cooperation between the governments of Pakistan and the United Arab Emirates in developing the Bulk and General Cargo Terminal at East Wharf, Karachi Port. The agreement, once finalized, is expected to enhance trade and facilitate efficient handling of cargo, ultimately benefiting both countries’ economies.
