Karachi, Shanghai ports to deepen cooperation

Cabinet approves sister port proposal that will give fresh fillip to bilateral trade

ISLAMABAD:

Pakistan and China are set to declare Karachi Port and Shanghai Port as sister facilities aimed at promoting port logistics, trade, information exchange, investment and cooperation in protection of port environment.

At the same time, Pakistan and China are struggling to make Gwadar Port functional by shifting significant cargo traffic to this deep-sea port.

With the establishment of sister port relationship between Karachi and Shanghai ports, trade between Pakistan and China will get a further boost.

Sources said that the Maritime Affairs Division informed the cabinet in a recent meeting that approval for the signing of an agreement on establishing sister port relationship between Karachi and Shanghai was expected to be given soon.

The cabinet was told that a draft of the "Agreement on Establishing Sister Port Relationship between Karachi Port of Pakistan and Shanghai Port of China" was provided by the Ministry of Foreign Affairs, aimed at promoting port logistics, trade, information exchange, attracting investment and extending cooperation in environmental protection at the two harbours.

Sources said that all stakeholders and relevant ministries had supported the signing of the agreement, which had also been vetted by the Law and Justice Division.

The Ministry of Foreign Affairs shared the final draft received from the Chinese side for approval and signing. Approval of the cabinet was solicited for inking the deal on establishing sister port relationship. In that regard, the cabinet considered a summary, submitted by the Maritime Affairs Division, and approved the proposal.

Additionally, the cabinet approved a plan to involve the private sector in handling imports and exports through Gwadar Port, with the objective of enhancing its role as a fully operational hub.

During a meeting held earlier, the cabinet resolved to shift 60% of public sector imports and exports of goods from Karachi Port to Gwadar Port. This decision aligns with a proposal to route 50% of public sector imports through Gwadar.

The cabinet mandated that at least 60% of public sector imports of essential commodities such as wheat, fertiliser and sugar be managed through Gwadar Port. Additionally, other commodities acquired by public sector entities from international markets will be considered for import via Gwadar.

Cabinet participants agreed that public sector entities involved in exporting goods would work to ensure that 60% of their shipments were routed through Gwadar Port.

To oversee implementation of the proposal, the cabinet formed a committee comprising the minister for commerce, minister for maritime affairs, secretaries of commerce and maritime affairs, railway secretary, Federal Board of Revenue chairman, National Highway Authority chairman and Public Procurement Regulatory Authority managing director.

The committee's task includes ensuring that at least 60% of public sector imports of wheat, fertiliser and sugar go through Gwadar. It will also review procurement plans of public sector entities to identify other potential imports via Gwadar Port and assess export plans to facilitate shipments through the port.

Additionally, the committee will evaluate the road and rail infrastructure supporting Gwadar Port, and identify the necessary repair work and new links to bolster logistics. It will explore the commodities suitable for private sector trade through Gwadar and devise incentive packages, if needed.

Security measures along transport routes to and from Gwadar will also be reviewed to ensure safe transit.