Rs60bn lost in sale of 500 acres of Port Qasim land, claims Vawda

ISLAMABAD: Chairman Senate Committee on Maritime Affairs Faisal Vawda Wednesday disclosed controversial allotments of hundreds of acres of land at Port Qasim and Karachi Port Trust (KPT) and directed the seizure of all allotments causing Rs100 billion loss to the national exchequer.

Chairing the committee meeting at the Parliament House, he disclosed that the state kitty suffered a loss of Rs60 billion in a controversial allotment of 500 acres of land at Port Qasim.

The primary focus of the meeting was on discussing significant issues concerning land allotments at Port Qasim and KPT, the state of maritime affairs and future direction of port infrastructure and development.

Vawda further disclosed that the KPT’s land worth Rs40 million per acre was allotted at just Rs1 million per acre, leading to a massive loss of Rs40 billion.

“This deal, which includes the sale of 200 acres of land separately, has caused a loss of Rs60 billion to the national treasury. This cannot be allowed to continue,” he said.

In the light of these discrepancies, he directed the cancellation of these allotments and instructed the authorities concerned to prepare a detailed report immediately, identifying the individuals involved.

“We will not hesitate to lift the restraining orders on this matter,” he said, adding that those responsible would be accountable to the NAB and other relevant agencies and the committee will use all necessary means to fix these issues.

Vawda also expressed concerns over similar allotments during the past era, emphasizing the need for transparency and accountability. He said even the Port Qasim Authority chairman was unaware of such illegal allotment.

If billions of dollars have been lost, we will recover it; our steps will be strong, and if required, the matter will be referred to the NAB as well as other authorities concerned for investigation, Vawda noted.

Federal Minister for Maritime Affairs Qaiser Sheikh responded by stating, “To my knowledge, no such transfer took place without permission of the board; however, we will collect all necessary details regarding the matter.” He highlighted serious issues faced by the maritime sector, mentioning stagnation in various projects, including fisheries, over the last several years.

“The SOE has been making a loss of six billion rupees, and many projects are stalled, yet salaries are being paid in crores,” he remarked.

The committee also discussed the broader challenges facing the country’s maritime infrastructure, especially in Karachi and Gwadar. Senator Pervaiz Rashid underscored the lack of a cohesive strategy, pointing out, “Unfortunately, we have never considered our ports as commercial entities. Absence of coordination among the departments has paralyzed progress. Failure to address overloading and the resulting damage to roads is one of the key issues that needs immediate attention.” Similarly, Senators Danesh kumar Nadeem Bhutto, Rubina Qaimkhani and Zeeshan Khanzada also emphasised the need for taking steps by the ministry for the development of ports as well as resolution of all issues.

Secretary Maritime Affairs Syed Zafar Ali Shah briefed the committee on several positive developments, including Rs90 billion profit for the sector in the previous year and a target of increasing the earnings by Rs14 billion.

“We are working on digitalization across ports to enhance efficiency. A digital system at ports can earn us an additional $100 per container daily,” the secretary said.

The committee also received updates on the ongoing and planned projects at Gwadar Port. The Gwadar Port chairman emphasized the potential of the port, citing a Japanese grant of one billion dollars for industrial pollution control. “We are working with the international partners on projects that will boost economic opportunities in Gwadar, including green shipping and green fuel projects,” he explained. Additionally, the committee was briefed on efforts to expand the port’s capacity, including the initiatives to improve the port infrastructure.

As part of the ongoing efforts to improve security and operations at Gwadar, the committee discussed the implementation of new security measures and development of infrastructure such as the Lyari Expressway, which aims to open new trade routes.

“There are many opportunities for development in Gwadar, particularly in fertilizer imports and export connections with Central Asia. Our task is to ensure that the local community is engaged, and we work towards eliminating illegal fishing and promoting sustainable development,” the Gwadar Port chairman added.

Vawda also expressed serious concern over the significant financial mismanagement by former minister Ali Zaidi in the previous government regarding the award of a dredging contract by the KPT.

He disclosed that the former minister unnecessarily delayed the process and retained $330 million in Pakistani currency rather than in US dollars. He added that this negligence resulted in a sharp rise in the dredging cost, which escalated from Rs5 to Rs15 per cubic yard, leading to an exponential increase in the overall expenses.

The meeting concluded by reinforcing the importance of the upcoming changes. “We will make the Ministry of Maritime Affairs a land bank, ensuring no one can misuse it for personal gains. The state must not allow such malpractices. The committee will follow these instructions to ensure we fix all outstanding issues and move toward sustainable growth.” Vawda also emphasized the committee’s determination to address all issues, particularly those related to the land.

The committee decided to make formal visits to Port Qasim, KPT and Gwadar and make on-ground inspections of various land acquisitions and evaluate a true picture of the issue, ensuring transparency and accountability in maritime affairs.

The meeting was attended by Senator Pervaiz Rashid, Senator Danesh Kumar, Senator Zeeshan Khanzada, Senator Nadeem Ahmed Bhutto and Senator Rubina Qaimkhani. Also in attendance were Federal Minister for Maritime Affairs Qaiser Ahmed Sheikh, Secretary Syed Zafar Ali Shah and the heads of relevant departments.