PICT faces uncertain future following concession agreement's expiry

October 16, 2023 (MLN): Pakistan International Container (PSX:PICT) embarked on a review of future business opportunities following the expiration of the concession agreement with Karachi Port Trust (KPT), and the review has not revealed any immediate financially viable business opportunities, the company's latest filing on the PSX showed today.

To recall, the concession agreement of PICT with KPT had expired on June 17, 2023, and the concession premises were 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 principal line of business.

As a result, the fundamentals of future business operations were ceased with the expiry of the concession agreement.

In accordance with the concession agreement between KPT and PICT, PICT is required to keep its legal existence for a minimum of 3 years following the expiry of the concession agreement.

During this period, the company will on a regular basis scan the market for any financially attractive business opportunities compatible with related provisions in its constitutional document.

Presently, PICT is actively involved in a complex handover procedure with KPT, including the smooth transition to the new concession holder.

Works are being performed on a cast compensatory basis.

The work also involves efforts to secure future employment opportunities for our employees with the new concession holder.

Copyright Mettis Link News