The mercantile scenario of Pakistan has faced difficulties in the past. The shipping industry in the private sector had a setback in 1974 due to nationalization. Thus a healthy competition in shipping between public and private sector ended. The traditional ship owners disappeared from the scene. Now the Government has introduced a Policy to boost private investment in the shipping sector by giving a host of incentives.

Shipping is a capital intensive industry and the Government alone cannot meet this sector’s requirements because of financial constraints and other development priorities. Considering this aspect, a number of incentives have been offered to encourage the participation of the private sector. A Merchant Shipping Policy has been formulated with the guidance and inputs of public and private sector experts and professionals as well as other stakeholders. The basic aim of this policy is to attract investment in this vital field through a predictable environment, and offering concrete incentives, assurances, easy rules, regulations and procedures. The previous policies did not cater for any incentives in the field of shipping. The new Shipping Policy would improve access to international markets by encouraging an efficient flow of foreign trade. The element of specific restrictions is applicable only on Government owned cargo which is to be transported by the National carrier as it falls under the UNCTAD Code of Conduct of 40 per cent trade which can be lifted by the National carriers.

Pakistan’s present ports i.e. Karachi Port, Port Qasim and Gwadar Port are easily accessible and have all port facilities for handling international cargo. Tankers up to 12 meters draft and other vessels between 10.5 to 11.5 meters can be berthed at other berths. Port Bin Qasim can berth ships with drafts between 11 to 11.5 meters. Additional facilities in the form of shipyard, dry-docking repairs and others are extensively available. In order to encourage private sector investment in shipping, 48 ship owning licenses have been issued to parties interested in owning and operating shipping companies under Pakistani flag.

Pakistan has offered no specific commitment on Maritime Transport in International Shipping, Auxiliary Services, Port service or others. Pakistan has also not offered MFN Exemption in Maritime Transport Services. Pakistan is focusing on bringing in quantitative and qualitative improvement in all spheres with the objectives to attract and facilitate private sector investment, deregulation for providing free environment, and ensuring efficient operation of the country ports. Though Pakistan has not been an active participant in maritime services negotiations, it has provided a liberal environment to foreign carriers. Only 5 per cent services are carried by domestic carries and 95 per cent by foreign carriers. Presently Pakistan is adopting a liberal policy of a predictable environment through incentives including duty exemptions, concessions, tax measures, fixed tax rates, simplified rules and procedures and assurances to provide a friendly environment. By attracting foreign investment, this sector will be able to meet domestic requirement and run cost efficiently.

Pakistan National Shipping Corporation (PNSC):

PNSC manages 15 vessels with a total capacity of 636,182 dwt. The existing fleet consist of 10 multipurpose cargo vessels, 4 Aframax crude oil tankers and one Panamax bulk carrier vessel which were acquired through PNSC’s own resources. The four Aframax oil tankers are participating in national and regional crude oil trade. PNSC has carried crude oil cargoes for India, Bangladesh and Sri Lanka. During fist nine months of the current fiscal year, the PNSC has lifted 5.4 million tonne of liquid cargo and 1.0 million tonne of dry cargo. The Corporation is continuing with its efforts to add more vessels at a total cost of about US$ 150 million out of which US$ 135 million is being arranged through foreign financing.