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Friday, February 28, 2025

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PM Shehbaz Approves Maritime Sector Overhaul to Boost Revenue to Rs9,000bn

ISLAMABAD: Prime Minister Shehbaz Sharif has approved a comprehensive revamp of Pakistan’s maritime sector with a goal to increase revenue from Rs2,610 billion to Rs8,000-9,000 billion.

Key Objectives of the Plan

The overhaul focuses on:
✅ Ports’ governance & restructuring
✅ Revenue generation & investment facilitation
✅ Digitisation for efficiency
✅ Shipbuilding & repair industry revival
✅ Expansion of fisheries & aquaculture

Implementation Strategy

  • A high-level implementation committee is in place, headed by the Minister for Defence, with members from law enforcement, intelligence agencies, and port authorities.
  • The committee meets fortnightly to monitor progress and ensure timely execution of reforms.
  • 120+ action items have been identified, with strict deadlines for implementation.

Major Reforms Underway

📌 Creation of Pakistan Maritime & Sea Port Authority (PMSPA) by March 30, 2025
📌 Appointment of CEOs for Karachi Port Trust (KPT), Port Qasim Authority (PQA), and Gwadar Port Authority (GPA)
📌 Upgrading Gwadar Port under CPEC, including:

  • Hinterland connectivity
  • Breakwater construction
  • Second-phase expansion to make it a deep-sea port
    📌 24/7 Operations at KPT (currently restricted to 7 hours/day)
    📌 Shipbuilding & Repair Industry Development
    📌 Remodeling Pakistan National Shipping Corporation (PNSC)
    📌 National Ports Master Plan Update
    📌 Ports Tariff Standardisation & Reducing Dwell Time
    📌 Improved Trans-shipment Operations & New Terminal Construction
    📌 Third-party Performance Audits of Ports
    📌 Harbor Dredging & Encroachment Removal at KPT
    📌 KPT-Pipri Railway Link Rehabilitation
    📌 Attracting Chinese Seafood Industry Investment in Pakistan
    📌 Cluster Shrimp Farming in Sindh & Balochistan

Challenges & Economic Impact

🔴 KPT’s Inefficiency:

  • 80% of its revenue is spent on salaries & pensions due to mismanagement & overstaffing.
  • Lack of digitisation is increasing operational inefficiencies.

🔴 No Pakistani Cargo Ships:

  • Pakistan does not own a single cargo container ship, leading to a foreign exchange loss of $5-8 billion per year.

🔴 Declining Shipbreaking Industry:

  • Gaddani was once the world’s leading shipbreaking hub but has declined due to high taxes & weak policies.

Why This Matters

Pakistan has one of the most strategic coastlines, but its maritime sector is underperforming due to poor planning & lack of coordination. The revamp plan aims to unlock billions in trade revenue and strengthen Pakistan’s global maritime presence.

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