UAE minister to visit Pakistan for signing energy-related deals
Last updated on: 24 June,2023 09:08 am
Development comes after Emirate took over four berths at Karachi Port
ISLAMABAD (Web Desk) – As Pakistan just inked a deal with the United Arab Emirates (UAE) to hand over control of the four berths at its main port in Karachi, a delegation is now set to visit Pakistan in the first week of July to sign different agreements.
This development is certainly a major boost to Pakistan – country facing a serious financial crisis and looking desperately for foreign investment amid shrinking foreign reserves – as many experts have claiming for months that the country would soon default – a prediction that is completely rejected by the government.
Minister for Industries and Technologies Sultan Al-Jabar will lead the Emirati delegation as it is expected the two sides will sign a MoU, among other agreements, on developing renewable energy projects in Pakistan.
Recent developments show there is a visible movement in the positive direction as Pakistan and the UAE are increasing collaborations in different fields, attracting Emirati Investment.
The UAE’s AD Ports Group signed an agreement Thursday to take over the running of part of main Karachi docking facility in a deal worth an immediate $220 million, the company said.
The deal will come as a shot in the arm for Pakistan, with the economy on the brink of collapse and the government desperate for big-ticket foreign investment to help service crippling debt.
AD Ports Group has formed a joint venture with another UAE company, Kaheel Terminals, to take over berths from Karachi Port Trust (KPT), the state-owned handling agency.
Karachi Port is Pakistan’s oldest and busiest, with 33 berths, and the UAE deal will see the joint venture lease four of them for the next 50 years,
“The JV will undertake significant investments in infrastructure and superstructure over the next 10 years,” an AD Group statement said.
Plans include deepening the berths to allow for bigger ships to dock, extending the quay wall, and increasing the container storage area.
As a result, the terminal will be able to handle ships capable of carrying up to 8,500 containers, and capacity will increase from 750,000 to a million containers a year, the statement said.
The bulk of development is planned for 2026.
On Friday, Wapda signed MoUs with the Private Office of His Royal Highness Sheikh Ahmed Dalmook Al Maktoum. The first one aims at establishing a framework for cooperation and collaboration to explore investment opportunities for small hydel power stations including 1MW Renala, 22 MW Rasul, 13.2 MW Chichokimalian and 13.8 MW Nandipur.
The second MoU is related to exploring investment opportunities specifically for development of floating solar power project on water reservoirs and water bodies of the existing hydel power stations of Wapda. The UAE is a major contributor to Pakistan’s economy in the form of grants, loans and direct investment, and has previously bailed out a government that for months has been on the brink of defaulting on its debt.