Tuesday’s meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), which was presided over by Finance Minister Senator Ishaq Dar, covered a summary of the Ministry of Maritime Affairs for a framework agreement between the governments of the UAE and Pakistan. The purpose of this framework agreement is to further strengthen bilateral maritime relations, as reported by The News.
Discussions on G2G Agreement
During the meeting, the committee delved into the recommendations put forth by the Framework Agreement Committee regarding a Government-to-Government (G2G) agreement under the Inter-Governmental Commercial Transaction Act 2022. The focus of the agreement revolves around ports and shipping, aiming to facilitate and enhance cooperation in these areas between the governments of the UAE and Pakistan.
Recommendation for Approval
After a comprehensive discussion, the committee unanimously recommended the draft framework agreement for approval by the federal cabinet. The primary objective of the intergovernmental framework agreement is to establish favorable conditions for the operation, maintenance, upgrading, investment, development, and advancement of the container terminal at Birth 6-9, East Wharf, Karachi Port Trust, Karachi.
As part of the agreement, the UAE has agreed to arrange financing for the transaction, showcasing their commitment to the development of maritime infrastructure.
Validity and Obligations
Upon signing by the parties involved, the agreement will come into force and remain valid for five years. However, it also allows for extensions if mutually agreed upon by both parties. It is worth noting that the expiration or termination of the agreement will not nullify any contractual obligations that have already been established or that have accrued before such termination.
The approval of the draft framework agreement between the UAE and Pakistan holds several potential benefits for both countries. Let’s explore some of the advantages that this maritime deal can bring:
Strengthened Bilateral Relations
The framework agreement signifies a commitment from both the UAE and Pakistan to deepen their bilateral relations, particularly in the maritime sector. By fostering closer cooperation, the two countries can explore new avenues for collaboration and strengthen their economic ties.
Enhanced Maritime Infrastructure
The agreement’s focus on the development and advancement of the container terminal at Karachi Port Trust presents an opportunity to improve the infrastructure for handling maritime trade. Upgrading the facilities and investing in modern technologies can result in increased efficiency, reduced transit times, and enhanced overall port operations.
Increased Investment
With the UAE taking on the responsibility of arranging financing for the transaction, this maritime deal has the potential to attract significant investment in Pakistan’s maritime sector. The availability of funds can support infrastructure development projects, create employment opportunities, and stimulate economic growth.
Expanded Trade Opportunities
A well-functioning and efficient container terminal can facilitate smoother trade flows between the UAE and Pakistan. By streamlining the import and export processes, reducing transit times, and ensuring reliable services, the agreement can contribute to a boost in bilateral trade volumes and promote economic integration between the two nations.
Technology Transfer and Skill Development
Collaboration between the UAE and Pakistan in the maritime sector can facilitate the transfer of advanced technologies and best practices. This knowledge exchange can help enhance the capabilities of local maritime industry professionals, fostering skill development and promoting innovation in the sector.
Implementation and Oversight
The coordination and control over the implementation of the agreement will be the joint responsibility of the UAE Ministry of Energy and Infrastructure and the Ministry of Maritime Affairs in Pakistan. This collaborative approach ensures effective monitoring and supervision of the agreement’s execution, promoting transparency and accountability.
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The Cabinet Committee on Inter-Governmental Commercial Transactions has given its seal of approval to the draft framework agreement between the governments of the UAE and Pakistan. This agreement aims to foster stronger maritime relations and facilitate collaboration in ports and shipping. With its focus on the development and advancement of the container terminal at Karachi Port Trust, the framework agreement sets the stage for increased investment and improved operations. By entrusting the UAE with financing responsibilities, both countries demonstrate their commitment to enhancing maritime infrastructure. As the agreement moves forward, joint oversight by the UAE Ministry of Energy and Infrastructure and the Ministry of Maritime Affairs in Pakistan will ensure smooth implementation and adherence to the agreed-upon terms.
