Karachi August 30 2023: Pakistan International Container (PICT), officially shift the preparation of financial accounts to non-going concern basis as High Court of Sindh dismissed company’s appeal seeking extension in Concession Agreement of KPT Berths.
The built, operate and transfer “Concession Agreement” which the PICT had with KPT for exclusive construction, development, operations and management of a common user container terminal at Karachi Port was for a period of twenty-one years commencing June 18, 2002. The concession agreement expires on June 17, 2023 and concession premises have been taken over by KPT on June 18, 2023. The terminal operated by the company at Berths 6 to 9 pursuant to the Concession Agreement was its key operational asset and the fundamentals of future business operations has ceased with the expiry of the Concession Agreement.
Since the past several years, PICT has raised the matter for early extension in Concession term and expansion of infrastructure, with KPT and other relevant quarters of the Government of Pakistan based on the precedent existing whereby KPT had provided early extension in the Concession term and expansion in the infrastructure to another Container Terminal.
PICT instituted a legal suit before the Honorable High Court of Sindh (HCS) seeking extension of the concession term. However, this legal suit culminated vide the order of the HCS after various hearings in June 2023, whereby the Company’s appeal was dismissed by the larger bench of HCS.
The company is actively involved in a complex handover procedure with KPT and is working closely to ensure a smooth transition. The Company is also conducting a transparent assessment of its legal position and options, carefully considering all relevant factors to determine the most appropriate path forward. The Company has also in place a commitment of financial support from its majority shareholder to ensure the Company meets its financial and contingent liabilities until the time Company decides the future course of its operations.
In view of the above events and circumstances, the company has prepared the condensed interim financial statements on a non-going concern basis which has also been referred by Company’s Statutory Auditor in their Review Report.
PICT is a subsidiary of ICTSI Mauritius Limited whereas its ultimate parent company is International Container Terminal Services Inc., a company incorporated in Philippines.
