Pakistan’s Prime Minister Approves Maritime Sector Reforms

Prime Minister Mian Muhammad Shehbaz Sharif has approved a comprehensive overhaul of Pakistan’s maritime sector, aiming to enhance efficiency, competitiveness, and economic contribution. The reforms, proposed by the Task Force on Revamping Pakistan’s Maritime Sector, encompass structural, operational, and strategic changes across key maritime institutions.

Establishment of Pakistan Maritime & Sea Port Authority (PMSPA)

A central element of the reforms is the creation of the Pakistan Maritime & Sea Port Authority (PMSPA). Former Minister Farough Nasim has been appointed to draft the PMSPA Act, with monthly progress reports to be submitted to the Prime Minister.

Abolition of Karachi Dock Labour Board (KDLB)

The Karachi Dock Labour Board (KDLB) is set to be abolished by April 30, 2025. The Ministry of Maritime Affairs (M/o MA) and Karachi Port Trust (KPT) are tasked with submitting proposals by January 15, 2025, and initiating necessary legislative amendments for Federal Cabinet approval by February 1, 2025.

Leadership Appointments and Operational Enhancements

Professional Chief Executive Officers (CEOs) will be appointed to Karachi Port Trust (KPT), Port Qasim Authority (PQA), and Gwadar Port Authority (GPA) by January 30, 2025. Additionally, port tariffs at all three ports are to be standardized by February 1, 2025. A National Dredging Plan will be formulated for capital and maintenance dredging, and the Ministry of Maritime Affairs, in consultation with KPT and Pakistan Rangers, will address land disputes and encroachments.

Pakistan National Shipping Corporation (PNSC) Reforms

The National Logistics Cell (NLC) has been directed to prepare a plan for the future business model of the Pakistan National Shipping Corporation (PNSC), including options for off-loading shares or complete privatization. The private sector will be offered stakes in PNSC instead of international buyers. A comprehensive fleet renewal plan will be developed as part of PNSC’s five-year business plan, focusing on replacing and enhancing its fleet with modern vessels that comply with foreseeable changes to the International Maritime Organization’s (IMO) regulatory framework. In-country construction of ships, such as container vessels contracted with Karachi Shipyard & Engineering Works (KS&EW), will continue and be encouraged. PNSC will also explore opportunities to enter other merchant shipping sectors for diversification, focusing initially on edible oil shipping, containerized shipping, and LPG shipping.

Digitalization and Modernization Initiatives

The rollout of the Pakistan Single Window (PSW) system and the procurement and deployment of the Vessel Traffic Management System (VTMS) will be expedited to streamline operations. The Customs-led Facilitation Mechanism, supervised by Military Intelligence, is set to be implemented by January 1, 2025.

Also See: Pakistan’s Maritime Ambitions: A Bid for Central Asian Trade?

Shipbuilding and Fisheries Development

The task force recommended reducing taxes on machinery and equipment for local shipbuilding projects. Prime Minister Sharif emphasized utilizing the existing capacity of Karachi Shipyard & Engineering Works (KS&EW) for commercial shipbuilding and repair. The ship recycling sector is to be given industrial status at the federal level, with a focus on implementing the Hong Kong Convention. A five-year fisheries development plan, cluster shrimp farming, and the establishment of hatcheries for lucrative fish species were endorsed to boost local aquaculture.

These reforms are expected to significantly enhance the efficiency and competitiveness of Pakistan’s maritime sector, positioning it as a key contributor to the national economy.