One key sales pitch that the powers that be are making on taking the Pakistan’s economy from the perpetual balance of payment crisis is seeking Government to Government (G-to-G) investment including the sell-off of State-Owned Entities to the Middle Eastern state-owned companies. A word of caution is required before deploying this approach.
For example, in 2023, a 25-year concession of container terminal at KPT (Karachi Port Trust) was extended to Abu Dhabi Ports Group without any tendering, and lately, another deal has been inked where outsourcing of bulk and general cargo terminal (non-containerized) at seven births are also being handed over to the Abu Dhabi Port, as well.
The container terminal concession was earlier with Pakistan International Container Terminal (PICT) and had there been open bidding for the recent concession, PICT would have had the first right of refusal. However, since it was G-to-G transaction (with no public bidding), PICT was not asked which is a global port management company with headquarters in the Philippines. The signaling was not right for global private players in shipping and other businesses.
Now another issue surfaced on the general cargo terminal. Here the new concessioners have almost doubled the stevedoring and cargo........