The Abu Dhabi Ports Group (ADPG), a prominent port operator from the UAE, has made a significant investment deal with Pakistan’s Karachi Port Trust (KPT) for acquisition & development of it’s PICT terminal at the East Wharf stretching over berth nos. 6-9. This concessional agreement will last for 50 years, while PICT formerly a subsidiary company of global ports operating giant M/s ICTSI who managed/controlled it for 21 years on BOT terms, and finally relinquished charge back to the KPT on expiry of their agreement very recently. Following it’s acquisition by ADPG under the new deal, the PICT has since been re-named as Karachi Gateway Terminal Limited (KGTL), and as per the agreement a Joint Venture between AD Ports Group and UAE-based company Khaleej Terminals will manage and develop KGTL at Karachi port. The venture will involve substantial investment in infrastructure & development, including deepening of the berths, extending quay walls and expanding container storage area.AD Ports Group, as majority share-holder will invest $ 220 million in concession and growth capital expenditure over the initial decade. The agreement aims to strengthen maritime industry ties and promote economic growth for both Pakistan and UAE.
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Pakistan Leases Karachi Port Terminals to UAE for 50 Years
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Pakistan to benefit’ from UK’s new trading scheme
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The United Kingdom’s Developing Countries Trading Scheme (DCTS) has now entered into effect, providing tariff reductions and simpler terms of trade to Pakistan and 64 other countries. The new scheme has replaced the Generalised Scheme of Preferences (GSP) and will help drive business between the UK and developing countries, reducing the need for aid. Under the DCTF Pakistan has retained it's enhanced preferences status and will continue to benefit from duty-free exports to the UK on 94 percent of goods exported. It will also remove tariffs on over 156 additional products, and simplify some seasonal tariffs. Total trade (goods and services) between the UK and Pakistan each year currently stands at £4.4 billion. It is expected that £120 million in tariffs will be saved on exports to the UK under the scheme. UK’s Trade Director for Pakistan and British Deputy High Commissioner, Karachi, Sarah Mooney, said: “This is a major development in the trading relations between the UK and Pakistan. This important new scheme will further strengthen the economic ties between our two great countries, helping Pakistan to bolster its exports to the UK and harness the power of trade for development.’’ Pakistani Commerce minister said: “Pakistan will enjoy one of the most generous sets of trading preferences offered by any nation in the world.” The scheme officially replaced the UK’s Generalised Scheme of Preference (GSP).
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Pakistan and China signed a $4.8 Bn deal to build a 1,200-megawatt nuclear power plant, Chashma 5 in the central province Punjab. The work on the project will begin immediately following the signing of MOU between the China National Nuclear Cooperation and Pakistan Atomic Energy Commission. The new project was originally planned to start a couple of years ago, and the Chinese had already disbursed an initial 30 billion Pakistani rupees ($104.53 million) to start the project. While Pakistan's total nuclear energy production capacity rose to 1,400 mw, when country's sixth nuclear power plant of 1,100 mw located in the port city of Karachi commissioned two years ago, and it was also constructed with Chinese assistance. China's continuing support in the sector will help Pakistan make the transition away from reliance on the fossil fuels.
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The Chashma 5 - Project Pakistan and China sign nuclear power plant deal
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Stage-I of Dasu Dam completed
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In a major development for the Dasu Hydropower Project, as per its initial design, the starter dam was to be completed in two stages – in it’s stage-I the dam has been elevated up to 785 meters, while in stage-II the elevation will be enhanced to 798 meters above the mean sea level. Stage-I of the dam has been completed in the current month before the high flow season, which is a landmark the project team has successfully achieved. As the high flow season has started, Indus River is flowing through the two diversion tunnels completed earlier this year, while some of the river water is overtopping the concrete-starter dam as designed. After the high flow season, construction of the starter dam’s stage-II will be carried out in October. This stage is scheduled for completion during the low flow season. Dasu project is a vital component of the least-cost, green and clean energy generation plan of the Water and Power Development Authority (WAPDA).
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Pakistan is all set to enter into framework agreement with Azerbaijan for the procurement of liquefied natural gas (LNG) which would end gas crises, as Azerbaijan will supply one LNG cargo every month to Pakistan at a “cheaper price”. SOCAR, State Oil Company of Azerbaijan Republic, has offered LNG cargoes through framework agreement under the government-to-government (G2G) arrangement to Pakistan. The framework agreement will be signed between SOCAR and Pakistan’s state - owned entity Pakistan LNG Limited (PLL). Azerbaijan would help Pakistan to fulfill its energy needs through cooperation in the fields of oil and gas. One LNG cargo per month will be offered by SOCAR 45 days prior to the start of the relevant delivery window, which will help Pakistan fulfill gas short fall in domestic consumptions during harsh winters .
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Pak-Azerbaijan LNG agreement to end gas crisis
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Pakistan, Turkmenistan agree to speed up work on TAPI gasline
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Pakistan and Turkmenistan recently signed a Joint Implementation Plan (JIP) for TAPI Gas Pipeline and also constituted senior co-ordination Council to accelerate the project’s agreements. The TAPI gas pipeline project aims to bring natural gas from the Galkynysh gas field in Turkmenistan to Pakistan through Afghanistan. Pakistan also invited Turkmen side to explore alternate gas supplies from Chaman to Gwadar and LNG infrastructure investment, which would expand supplies to Europe and global LNG markets. The pipeline will transport up to 33 billion cubic meters (bcm) (average 3.2 BCFD) of natural gas per year over a 30-year period. The supply source is the Galkynysh gas field in the eastern region of Turkmenistan, whereas, Pakistan’s off-take will be 1.3 BCFD with a pipeline diameter of 56 inch. The TAPI project will be transformative towards the energy security of Pakistan. Low-cost gas supplies will make Pakistan’s industrial sector competitive worldwide and lead to far-reaching employment opportunities for the youth.
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In a bid to placate the International Monetary Fund (IMF), the Pakistani government has declared the immediate lifting of import restrictions. However, both the business community and experts believe that this move alone will not bring significant changes to practical business activities unless foreign exchange reserves are significantly bolstered. Priority-based imports will continue until foreign currency inflows boost reserves. Energy imports will retain top priority, followed by food and pharmaceutical imports, exports-oriented imports, machinery imports for projects with 75% completion, and imports on one-year deferred payment, respectively. Experts have highlighted the negative impact of import restrictions on car assembly plants, cement and steel factories, and other industries reliant on imported raw materials.
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SBP lifts import ban amid IMF pressures
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PBF for more trade among SAARC nations
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The trade among South Asian nations was declining every year, there had been rapid economic growth in the region, but unfortunately it confronted a number of complex issues and barriers to trade that limited cross-border regional trade. “Contrary to this, we see increased integration in other regional blocs,” the intra-regional trade was over 40% under the North American Free Trade Agreement (NAFTA
), 68% in the European Union (EU) and 27% under the Association of Southeast Asian Nations (ASEAN). Their economic integration was directly linked to their GDP per capita, higher productivity, reduced poverty and unemployment. The need for studying the successes achieved by other regions and adopting their strategies of regional identity and solidarity to ensure speedy economic growth and people’s prosperity in the SAARC region as well.
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The vessel, “Clyde Noble”, carrying 55,000 MTs of Russian Crude oil arrives Pakistan on 27th June, 2023 with a delay of 7 days, as this being the second shipment after the initial 45,000 MTs received on 12th June, as part of the 100,000 MTs supplied from Russia through trans-shipment from a larger tanker off Omani port.
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Second Russian Crude Cargo To Pakistan
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