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Pakistan: Cash-strapped country leases part of Karachi port to UAE

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According to AD Ports, according to the agreement, AD Ports Group, as the majority shareholder, established a joint venture company with Kahleel Terminals, an American company, to be responsible for the operation and development of KGTL No. 6-9 berths at the Karachi Port East Terminal.

Updated June 24, 2023 | 10:05 AM (ST)

There will be a major investment of $220 million in infrastructure and superstructure (Photo: Pixabay)

Urgent need to attract external financing, cash is tight Pakistan Signed a 50-year franchise agreement with a company United Arab Emirates The Karachi-based company will operate Karachi Gateway Terminals Limited (KGTL) and invest US$220 million ($63.129 billion) in infrastructure development over the first 10 years of the deal.The agreement is made by the UAE advertising port group and Port of Karachi Trust, IANS reports.

According to AD Ports, according to the agreement, AD Ports Group, as the majority shareholder, established a joint venture company with Kahleel Terminals, an American company, to be responsible for the operation and development of KGTL No. 6-9 berths at the Karachi Port East Terminal.

The joint venture will make a major investment of $220 million in infrastructure and superstructure over the next 10 years, most of which will be completed by 2026. These include deepening the berths, extending the quay walls and adding container storage areas, IANS reported, citing La Stampa.

As a result, the terminal will be able to handle post-Panamax vessels of up to 8,500 TEU (20-foot equivalent units), increasing container capacity from 750,000 TEU to 1 million TEU per year. The expansion and enhancement will further strengthen the position of the terminal and Karachi as a major player in the maritime industry.

Historically, the terminal has generated about $55 million in annual revenue and about $30 million in EBIDTA, IANS reported, citing The Press.

Recently, the Prime Minister of Pakistan Shebaz Sharif Met with IMF Managing Director Kristalina Georgieva to try to free up stagnant funds.

The meeting took place on the sidelines of the Paris Global Financing Summit, a week before the IMF Extended Fund Facility (EFF) agreed for 2019 is due to expire on June 30.

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