Senate panel freezes Port Qasim land allotments over Rs60 billion loss

The Senate Standing Committee on Maritime Affairs has halted all land allotments and acquisitions at Port Qasim and Karachi Port Trust (KPT) following revelations that 500 acres of Port Qasim’s land, valued at Rs40 billion, was allotted for just Rs5 billion on deferred payment. Committee Chairman Faisal Vawda disclosed the matter on Wednesday, stating that the deal resulted in an estimated Rs60 billion loss to the national exchequer.

According to media reports, Vawda, while addressing the committee, alleged that land worth Rs40 million per acre was allotted at just Rs1 million per acre, with an additional 200 acres separately sold at similarly reduced rates. He directed authorities to immediately cancel these allotments and compile a detailed report identifying those responsible. 

He warned that those involved would be held accountable and that the case could be referred to the National Accountability Bureau (NAB) and other investigative agencies.

The Federal Minister for Maritime Affairs, Qaiser Ahmed Sheikh, Secretary Syed Zafar Ali Shah, and other officials expressed unawareness of the land transactions. Sheikh stated that to his knowledge, no land was transferred without board approval, but assured that all necessary details would be collected. 

He also highlighted ongoing challenges in the maritime sector, mentioning stalled projects and losses of Rs6 billion in state-owned enterprises (SOEs), despite employees receiving high salaries.

The committee also discussed broader challenges facing port infrastructure, particularly in Karachi and Gwadar. Officials informed the panel that Pakistan’s Ports Master Plan expired in 2016 and has not been updated since. The Ministry of Maritime Affairs is now finalizing a new plan, expected to be completed in the coming months. 

Senator Pervaiz Rashid criticised the lack of strategic planning, stating that ports have never been treated as commercial assets, resulting in poor coordination and road infrastructure damage due to unchecked overloading.

Vawda further revealed that $303 million allocated for dredging was kept in local currency, leading to significant financial losses. The committee decided to write a letter to the Prime Minister, proposing that once cleared, the Port Qasim land would be transferred to the Special Investment Facilitation Council (SIFC) for proper utilisation.

The Secretary of Maritime Affairs briefed the committee on positive developments, noting that the sector earned Rs90 billion in profits last year and aims to increase it to Rs100 billion by the end of the current fiscal year. He stated that digitalization of port operations could bring an additional $100 per container daily in revenue.

The committee also reviewed Gwadar Port’s development, with the Gwadar Port Authority chairman highlighting a $1 billion Japanese grant for industrial pollution control and ongoing collaborations with international partners for green shipping and fuel projects. Infrastructure expansion plans, including the Lyari Expressway project, were also discussed as part of efforts to enhance security and improve trade routes.