Ministry of Maritime prepares draft of new shipping policy

The Ministry of Maritime Affairs has prepared a draft of the Pakistan Shipping Policy 2024, aimed at bolstering the maritime sector by providing financial security to registered shipowners and incentivizing investments.

The new policy will replace the Pakistan Merchant Marine Policy 2001 and its 2019 amended version.

The ministry convened a stakeholder workshop to deliberate on the proposed new shipping policy. The participants included the Maritime Affairs Secretary Syed Zafar Ali Shah, chairpersons of port authorities, senior officials from the maritime affairs ministry, and representatives from the private sector.

The new shipping policy legislation requires ship owners to furnish adequate bonds. This applies if authorities detain or seize their registered vessels within Pakistan’s territorial jurisdiction. Ship owners must provide these bonds within 24 hours of the seizure.

The Maritime Affairs Secretary informed workshop participants that the Shipping Policy 2024 aligns with International Maritime Organisation standards and regulations.

a notable point was that the government should ensure it returns the bail bonds within one month if it settles the case.

In this regard, the Ministry of Maritime Affairs should establish a help desk and set up special maritime courts with powers equal to high courts.

Also See: Pakistan: A Nation with Sea but with Sea Blindness

Key Proposals

The draft policy proposes that newly registered Pakistani shipping companies pay $0.75 per gross registered tonnage for five years. This is compared to the current $1 paid by the Pakistan National Shipping Corporation. The $0.25 rebate aims to encourage domestic and national investors to engage with the maritime industry.

Furthermore, the draft proposes allowing registered Pakistani shipping companies to seek financing from foreign financial institutions and banks.

Workshop participants proposed granting a 10-year tax exemption to new foreign shipping companies. They also called for state authorities to assist Pakistani shipping companies in opening foreign currency accounts.

This news is sourced from Pakistan Today and is intended for informational purposes only.