KARACHI , May 29, 2023: Minister for Maritime Affairs Faisal Sabzwari has revealed that an agreement involving $500 million investment with Gulf countries has reached final stages and is likely to be completed soon.
To ensure Foreign Direct Investment (FDI’s) in accordance with the conditions set by the International Monetary Fund (IMF), an intergovernmental agreement policy will be submitted to the law ministry on Monday.
Speaking to members of the Korangi Association of Trade and Industry (KATI), Sabzwari stated that Pakistan and the United Arab Emirates (UAE) are working under a government-to-government (G2G) agreement, with a focus on bulk terminals among three projects.
According to a press release, Sabzwari mentioned plans to establish industrial parks spanning 1,250 acres in Port Qasim, to facilitate the foreign investors.
He acknowledged that there have been no tariff increases at the port and recently there was imposition of restrictions on leases, he also emphasized the need for digitalization. Sabzwari also noted a slight increase of 1.5% in the cost of production for industrialists due to the raised terminal charges from 60 cents to 80 cents.
Furthermore, consultations have been held with stakeholders, including container operators, to reduce demurrage charges and penalties at the port. Moreover, all penalties associated with these charges have been eliminated by the Karachi Port.
Sabzwari highlighted the addition of a maritime vessel to the Karachi port fleet for transporting edible oil.
Additionally, the minister announced the approval for the construction of a beach wall at Karachi Fish Harbour. He also mentioned plans to establish a laboratory for marine fisheries.
Earlier, KATI President Faraz-ur-Rehman stressed the need for regulating shipping companies and proposed the implementation of an online system for demurrage charges and penalties based on the container’s value, like shipping booking system WeBOC.
Zubair Chayya, the Deputy Patron-in-Chief of KATI, expressed the view that Pakistan, with its extensive coastline of 1,400 kilometres and abundant marine resources, including highly in-demand fish species, should focus on utilizing the coastal belt for tourism in order to achieve significant economic benefits.