Pakistan approves complete overhaul of maritime sector

Pakistan Prime Minister Shehbaz Sharif has approved the creation of the Pakistan Maritime & Sea Port Authority (PMSPA), as proposed by the task force on revamping the country's maritime sector.

According to an official document, Farough Nasim will draft the PMSPA Act.

Moreover, the Karachi Dock Labour Board (KDLB) will be abolished by April 30, 2025. The Ministry of Maritime Affairs and Karachi Port Trust (KPT) are to submit proposals by January 15 and initiate necessary legislative amendments for approval by the Federal Cabinet by February 1.

At a briefing by the task force, Sharif directed the National Logistics Cell (NLC) to prepare a plan for the future business model of the Pakistan National Shipping Corporation (PNSC), including off-loading shares or complete privatization.

The private sector of Pakistan will be offered stakes in PNSC instead of international buyers.

The PNSC needs to urgently replace and enhance its fleet with modern vessels that comply with foreseeable changes to the International Maritime Organization's regulatory framework.

A comprehensive fleet renewal plan will be developed as part of PNSC's five-year business plan. In-country construction of ships, such as container vessels contracted with Karachi Shipyard & Engineering Works, will continue and be encouraged.

The PNSC will explore opportunities to enter other merchant shipping sectors for diversification, focusing initially on edible oil shipping, containerized shipping, and LPG shipping.

During the briefing by the task force, Sharif also approved that professional CEOs will be appointed to Karachi Port Trust, Port Qasim Authority, and Gwadar Port Authority. Tariffs at all three ports will be standardized by February 1.

A National Dredging Plan will be formulated for capital and maintenance dredging. The Ministry of Maritime Affairs, in consultation with KPT and Pakistan Rangers, will address land disputes and encroachments.

The Customs-led Facilitation Mechanism, supervised by Military Intelligence, will be implemented by January 1. The procurement and deployment of the Vessel Traffic Management System (VTMS) will be expedited.

The task force recommended reducing taxes on machinery and equipment for local shipbuilding projects. Sharif emphasized utilizing the existing capacity of Karachi Shipyard & Engineering Works for commercial shipbuilding and repair.