Pakistan government backs NLC plan to acquire 30% stake in PNSC

The government has moved forward with a plan to allow the National Logistics Corporation (NLC) to acquire a 30% stake in the Pakistan National Shipping Corporation (PNSC), including management control and consolidation rights, according to official correspondence.

PNSC said it had received a letter from the Ministry of Maritime Affairs forwarding a communication from NLC that referred to a directive from the Prime Minister’s Office. In that letter, Prime Minister Shehbaz Sharif concurred in principle with the proposal for NLC to acquire the minority stake along with transfer of management control, subject to applicable laws and corporate by-laws, the Company filed in a statement to Pakistan Stock Exchange.

The proposed transaction signals a significant restructuring of Pakistan’s state-owned logistics and maritime sectors, potentially integrating shipping and inland logistics operations under closer coordination.

PNSC's strategy

Earlier this year, PNSC unveiled a major fleet expansion plan backed by an estimated investment of about $500 million. The state-run shipping line aims to expand its fleet to at least 20 vessels by the end of fiscal year 2026, with a longer-term target of operating up to 30 vessels to strengthen national cargo capacity and reduce reliance on foreign carriers.

This month, the national carrier informed the stock exchange in a filing that it had acquired two vessels — MT Lahore and MT Quetta — as part of its fleet growth strategy. The additions are expected to enhance cargo-handling capacity and support higher freight earnings.

As part of the broader expansion drive, the Karachi Port Trust and Port Qasim Authority have issued letters of intent and pledged financial assistance to support the growth plan, the company said.

PNSC is also pursuing wider strategic partnerships to enhance maritime cooperation. It has signed a memorandum of understanding with China’s Shandong Xinxu Group as part of efforts to diversify business operations and strengthen international linkages.

Company officials have acknowledged that the expansion will increase operating and fixed costs in the short term, including higher depreciation and insurance expenses associated with fleet growth. However, they say the strategy is designed to improve long-term competitiveness, enhance shareholder value and boost freight revenues.

PNSC projects freight earnings could rise to around $700 million over the next three years by expanding cargo operations and capturing a larger share of Pakistan’s national cargo movement.

Financially, the company reported a net profit of PKR 5.877 billion for the first six months of the current fiscal year, down from PKR 8.376 billion in the same period last year, reflecting pressure on earnings amid rising costs and market volatility.

The proposed stake acquisition by NLC, if finalized, would mark one of the most notable shifts in oversight of the country’s maritime flag carrier in recent years, aligning it more closely with Pakistan’s broader logistics infrastructure strategy.