Karachi Port Concession.. UAE lifeline for Pakistan’s collapsing economy

Pakistan signed a 50-year “concession” agreement with the Abu Dhabi Port Group in the United Arab Emirates on Thursday in an effort by the heavily indebted country to raise much-needed funds and repay its debts to the International Monetary Fund.

The agreement came through a joint venture between Abu Dhabi Port Group, its largest shareholder, and Kahel Terminals, based in the United Arab Emirates, a company established to manage logistics and operations, according to a statement issued by Abu Dhabi Port Group.

The companies signed the agreement with the Pakistani Federal Government Agency of Karachi Port (KPT), which oversees operations at Karachi Port.

Abu Dhabi Ports Group did not disclose the value of its offer to KPT, and merely stated that the joint venture will invest heavily in infrastructure development over the next 10 years, with much of it planned for 2026.

The port of Karachi generates revenues of about $55 million annually, with a net profit of $30 million, according to Abu Dhabi ports.