Monday, November 17, 2025

PIMEC 2025: Pakistan Plans to Boost Maritime Sector, Blue Economy

Pakistan recently held its second International Maritime Expo and Conference (PIMEC-25) in Karachi where it announced ambitious plans to expand its maritime sector and boost its blue economy. It is an initiative of the Pakistan Navy, organized under the patronage of the Ministry of Maritime Affairs.  The country plans to invest a $100 billion in maritime development by expanding its national shipping fleet, building three new deep sea ports, adding a new shipyard at Gwadar, modernizing its fisheries, and upgrading maritime education. The plan called "Maritime @100" focuses on turning Pakistan into a regional maritime hub for trade, energy, food, and sustainability. It aims to increase the sector's GDP contribution from the current 0.4%-0.8% to 4% by 2047.

PIMEC 2025. Source: Lovin Karachi


Pakistan has a 1,046 kilometers long coastline on the Arabian Sea with maritime sovereignty over 200 nautical miles deep Exclusive Economic Zone (EEZ) and 150 nautical miles of Continental Shelf. This adds 290,000 square kilometers of sea or about 36% of the country's land area open for tapping vast resources in it. 

Pakistan's "Blue Economy" in this extended economic zone includes seafood and energy resources as well as international trade connectivity with the rest of the world. It offers opportunities for water sports, recreation and tourism in the coastal areas of Pakistan. The country recently awarded licenses for 23 offshore exploration blocks to four consortiums led by local energy companies, some partnered with foreign firms including Turkey's national oil company TPAO. These blocks cover an area of 53,500 square kilometers.

PIMEC-25 attracted 178 exhibitors, including 28 international firms and 150 local organizations, alongside 133 international delegations representing 44 countries from Europe, Asia, the Americas, Africa, the Middle East, and the Far East.  Participants showcased a wide array of innovations, from uncrewed underwater vehicles (UUVs) and drone jamming guns to advanced port technologies, showcasing Pakistan’s growing role in regional maritime trade.

Zarwah Enterprises, a startup led by Minahil Yousaf, Pakistan’s first female-led aquaculture company, demonstrated sustainable pond construction and shrimp farming solutions. AquaTech Fisheries, founded by Muhammad Kamran and Ahmad Hussain, presented innovative fish feed and aquaponics systems across Pakistan, including new farms in Punjab.

Woot Tech and Winged Innovative Solutions (WIS) rolled out remote-controlled drones and unmanned surface vessels (USVs) equipped with rotary cameras, designed for surveillance, mapping, and cloud seeding. WIS showcased an unmanned underwater vehicle (UUV) for deep-sea repairs and a portable jammer system for military use. These gadgets highlight how homegrown tech Karachi maritime solutions are supporting both commercial and naval operations.

The National Electronics Complex of Pakistan (NECOP) demonstrated the SAFRAH drone jamming gun, which can disable drones up to 1.5 km away for 40 minutes. NECOP also displayed a maritime logistics drone and the Integrated Platform Management System (IPMS), letting ships monitor multiple systems from a single control point. Another Pakistani defense firm revealed a 25-foot remote-controlled USV capable of traveling 30 km and running for up to five hours.

Related Links:

Haq's Musings

South Asia Investor Review

US EIA Estimates of Oil and Gas in Pakistan

Gwadar to Rival Shenzhen

Pakistan Navy Modernization, Indigenization

Pakistan's Blue Economy

Riaz Haq's Youtube Channel


16 comments:

  1. Riaz, Pakistan has come up with so many plans since its birth that people no longer believe that they will ever be executed! let us hope that this one succeeds.

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    Replies
    1. The Military-Business Complex has an unfair tax advantages and consistently crowds out private investment in critical infrastructure and social development, undermining the prospects for broad-based growth and stability. I do think if private companies (Milbus free) are allowed to operate like any other in the world, they can push Pakistan GDP growth rate to much higher levels.

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  2. Yes, Pakistan has not executed well but there has still been significant development in water, power, telecom and road infrastructure. Without it, Pakistan would be in much more dire straits. Example: Afrer rapid population growth over the last several decades, Pakistanis would be starving today without the Green Revolution of the 1960s. Increased farming and vast irrigation network and dams have enabled the country to remain one of the world’s largest food producers.

    https://www.riazhaq.com/2021/01/pakistan-among-worlds-largest-food.html?m=1

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  3. Pakistan has launched a "$100 billion maritime plan," also called "Maritime @100," to significantly boost its "blue economy" by 2047. The plan aims to achieve this by modernizing ports like Gwadar, expanding the national shipping fleet, developing new deep-sea ports, modernizing the fisheries industry, and investing in renewable marine energy. The strategy focuses on turning Pakistan into a regional maritime hub for trade, energy, food, and sustainability.


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  4. Excellent initiative, Brofessor sb. Regards

    ReplyDelete
  5. AI Overview
    Pakistan's Maritime Sector: Time to Shake Away Policy ...
    Pakistan's maritime sector has vast potential due to its strategic location and extensive coastline, but it is currently underdeveloped, with challenges including poor infrastructure and an insufficient national shipping fleet. The sector includes traditional industries like fisheries and shipping, as well as emerging areas such as renewable energy, deep-sea mining, and aquaculture. Recent initiatives and a focus on technology, such as port modernization and the use of drones and AI, aim to boost growth, while government and private sector collaborations are seen as crucial for unlocking this potential.
    Key sectors and opportunities
    Maritime transport: Pakistan's major ports (Karachi, Port Qasim, and Gwadar) are the backbone of its trade, but their effectiveness is hampered by infrastructure and operational issues.
    Fisheries: A significant area with potential for both conventional fishing and aquaculture, which is attracting new investment and technology.
    Emerging industries: Opportunities exist in deep-sea mining, renewable energy (like tidal and wind power), marine biotechnology, and offshore installations.
    Shipbuilding and repair: The sector includes traditional shipbuilding, particularly of small vessels and dhows, though it needs government support to remain competitive.
    Challenges
    Underutilization of ports: Ports like Karachi, Qasim, and Gwadar are underutilized due to poor infrastructure, operational bottlenecks, and outdated facilities.
    Lack of a strong national fleet: The Pakistan National Shipping Corporation (PNSC) has a limited fleet, leading to a heavy reliance on foreign carriers and significant annual freight payments abroad.
    Infrastructure and operational issues: A lack of private sector participation, inconsistent policies, and inefficiencies at ports contribute to slow growth.
    Regional tensions: Geopolitical factors and regional tensions also influence the security and development of the maritime sector.
    Recent developments and future outlook
    Technology adoption: There is a growing focus on modern technology, including AI for surveillance, remote-controlled drones, unmanned surface vessels (USVs), and integrated management systems.
    Port modernization: Efforts are underway to modernize and develop the major ports, with Gwadar Port seen as a key potential hub under the China-Pakistan Economic Corridor (CPEC).
    Fleet expansion: The government is looking to increase the size of the PNSC fleet to reduce reliance on foreign shipping.
    Public-private partnership: Recognizing the need for investment, the government is encouraging private sector participation and international collaboration to boost the sector's growth.

    ReplyDelete
  6. Pakistan approved a new offshore exploration consortium on Tuesday, clearing Turkish Petroleum Overseas Company to take over operatorship of the Eastern Offshore Block-C as part of a push to revive drilling, the adviser to the finance ministry said.
    Pakistan's Economic Coordination Committee approved Pakistan Petroleum Limited's (PPL.PSX), opens new tab request to assign part of its interest in the block to TPOC, Mari Energies (MARE.PSX), opens new tab and state-run Oil & Gas Development Co Ltd (OGDC.PSX), opens new tab, leaving PPL with a 35% stake.




    https://www.reuters.com/business/energy/pakistan-clears-tpoc-led-consortium-operate-offshore-block-2025-11-18/


    ————————-

    https://tribune.com.pk/story/2578126/turkish-firm-awarded-offshore-block

    ISLAMABAD:
    The Economic Coordination Committee (ECC) on Tuesday allowed a Turkish firm to operate an offshore exploration block and extended the licence period of the zone.
    Pakistan Petroleum Limited (PPL) is the operator of the offshore block but it has failed to start work for the last four years. Consequently, the ECC permitted Turkish Petroleum Overseas Company (TPOC) to kick off work on the Eastern Offshore Block-C.
    The ECC approved PPL's request for assigning participating interests in the block – a significant milestone in Pakistan's offshore exploration efforts. Under the new arrangement, the participating interests will be held by TPOC with a 25% share, PPL with 35%, Mari Energies with 20% and Oil & Gas Development Company (OGDC) with 20%.
    This will bring international offshore operating experience to Pakistan's exploration landscape and is expected to enhance technical capabilities, operational efficiency and overall project delivery. The block contains drill-ready prospects, which will be pursued by the consortium.
    The exploration well is expected to attract substantial foreign investment to Pakistan's offshore sector, reinforcing the government's commitment to deepening reliance on indigenous energy resources. In the event of success in drilling, additional opportunities in the area will be prioritised, ultimately contributing to Pakistan's resource base and long-term energy security.
    This development aligns with the government's recent award of 23 offshore blocks to various exploration and production (E&P) companies, including the members of this consortium. With ECC's approval, the consortium is now set to advance preparations for drilling operations.
    The proposals submitted to ECC for approval included extension in phase-II of the Eastern Offshore Indus Block-C by 36 months, effective from July 1, 2025 in accordance with Rule 26(1) of Offshore Rules 2023.

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  7. Maersk reaffirms $2bn port investment in Pakistan

    https://www.thenews.com.pk/latest/1359150-maersk-reaffirms-2bn-port-investment-in-pakistan

    SLAMABAD: Global shipping giant Maersk has reaffirmed its $2 billion investment plan for Pakistan, signaling one of the country’s most significant prospective boosts to port and logistics infrastructure in recent years.

    The investment centers on developing a new port at Gadani, Balochistan, alongside a modern shipping terminal and expanded warehousing and supply chain facilities. The initiative is designed to strengthen Pakistan’s maritime capacity and enhance regional trade connectivity.

    The plan builds on a Memorandum of Understanding signed in October 2024 between Pakistan and Denmark, under which Maersk committed to explore major investments in port modernization, integrated logistics hubs, maritime workforce development, sustainable ship recycling and greenshipping practices. Officials say these areas align with Pakistan’s broader goals of improving trade efficiency and meeting global environmental standards.

    The reaffirmation came during a high-level meeting between a visiting delegation from APM Terminals, a Maersk subsidiary, and Federal Minister for the Board of Investment Qaiser Ahmed Sheikh. The delegation briefed the minister on the project’s progress and future expansion components.

    Sheikh said the government was committed to fully facilitating international investors, noting that Prime Minister Shehbaz Sharif and Finance Ministry remain aligned on efforts to draw long-term foreign investment. He added that the Board of Investment is working to streamline procedures and reinforce policy support to accelerate major projects.

    Describing the potential investment as “transformative” for Pakistan’s maritime sector, Sheikh said Gadani’s strategic location offers the most efficient route for transit trade with Central Asia, positioning Pakistan to become a more competitive regional logistics hub.

    ReplyDelete
  8. Pakistan@FaseehMangi

    Petroleum is reclaiming land from the sea to create a launchpad to ramp up oil and gas exploration

    The artificial island will come up about 30kms off the coast of the southern Sindh province, near Sujawal


    https://x.com/faseehmangi/status/1991106775249244212?s=61&t=mgTxrmITUbpo9NntN5677Q

    ———

    The artificial island will come up about 30 kilometers (19 miles) off the coast of the southern Sindh province, near Sujawal, PPL's General Manager Exploration and Core Business Development, Arshad Palekar, said on the sidelines of an oil and gas conference in Islamabad

    Pakistan to build an island to boost oil exploration
    Construction will be completed in February, and operation will start immediately after
    Last updated: November 19, 2025 | 18:54

    https://gulfnews.com/business/energy/pakistan-to-build-an-artificial-island-to-boost-oil-exploration-1.500351983

    Pakistan Petroleum Ltd., a state-owned energy company, is reclaiming land from the sea to create a launchpad to ramp up oil and gas exploration.
    The artificial island will come up about 30 kilometres off the coast of the southern Sindh province, near Sujawal, PPL’s General Manager Exploration and Core Business Development, Arshad Palekar, said on the sidelines of an oil and gas conference in Islamabad. Planned with a height of six feet, the platform will prevent high tides from interrupting round the clock exploration work, he said.

    Pakistan’s drilling efforts are gaining fresh momentum after US President Donald Trump indicated an interest in the country’s 'massive oil reserves' in a social media post in July. Since then, the country has awarded offshore exploration licenses to local companies PPL, Mari Energies Ltd. and Prime International Oil and Gas Co.

    The project, a first for Pakistan, builds on Abu Dhabi’s experience, where artificial islands for drilling have been successfully built, Palekar said.
    Construction of the island will be completed in February, and operation will start immediately after, according to Palekar. The company aims to drill around 25 wells.





    ReplyDelete
  9. Faseeh Mangi
    @FaseehMangi
    Turkey Plans Drone Facility in Pakistan in Global Defense Push | Exclusive

    Talks over the project have advanced recently, which would see Turkey export stealth and long-endurance drones to be put together in Pakistan

    https://x.com/FaseehMangi/status/1996908814323613836?s=20

    ---------------

    Turkey Plans Drone Facility in Pakistan in Global Defense Push


    https://www.bloomberg.com/news/articles/2025-12-05/turkey-plans-drone-facility-in-pakistan-in-global-defense-push

    Turkey plans to set up a facility in Pakistan to assemble combat drones as part of its drive to boost its defense industry in international markets.
    Talks over the project have advanced significantly since October, and would see Turkey export stealth and long-endurance drones to be put together in Pakistan.
    The discussions are part of Turkey's efforts to grow its defense industry, which underpins President Recep Tayyip Erdogan's ambitions to strengthen his influence in the Middle East and further afield.
    Turkey plans to set up a facility in Pakistan to assemble combat drones, part of Ankara’s drive to boost its defense industry in international markets, according to Turkish officials familiar with the matter.

    Talks over the project, which would see Turkey export stealth and long-endurance drones to be put together in Pakistan, have advanced significantly since October, said the people, who spoke on condition of anonymity to discuss sensitive information.

    Turkey’s Defense Ministry declined to comment. Pakistan’s Information Minister Attaullah Tarar didn’t respond to requests for a comment.

    The discussions are part of Turkey’s efforts to grow its defense industry, a strategy that underpins President Recep Tayyip Erdogan’s ambitions to strengthen his influence in the Middle East and further afield. The country has announced deals this year including an order by Indonesia for fighter planes and has plans to supply more arms to Saudi Arabia and Syria.

    Turkey’s defense exports increased 30% in the first 11 months of this year to a record $7.5 billion, Haluk Gorgun, who heads the presidency’s defense-industry body, said on Thursday.

    Turkey has long-standing ties with Pakistan and is building corvette warships for its navy under a co-production deal, according to both countries. Turkey has upgraded dozens of Pakistan’s F-16s and now wants Islamabad to join its Kaan fifth-generation fighter program, the people said.

    The talks to bolster Pakistan’s military capabilities come in the wake of a ceasefire with India following a four-day military clash between the nuclear-armed neighbors in May. Tensions are also high between Pakistan and Afghanistan, leading to a series of clashes, ever since Islamabad accused the Taliban of hosting militant groups that plan attacks on the country.

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  10. Karachi Port Bulk Terminal Deal Signed by AD Ports Group


    https://www.themaritimestandard.com/karachi-port-bulk-terminal-deal-signed-by-ad-ports-group/


    Karachi Gateway Terminal Multipurpose Limited (KGTML), part of Noatum Ports, the international ports operating arm of AD Ports Group, and Louis Dreyfus Company Pakistan (Private) Limited, a subsidiary of global agricultural goods merchant and processor Louis Dreyfus Company (LDC), have signed a long-term commercial agreement to develop and operate a clean bulk handling and storage facility for agricultural goods at Karachi Port.

    Under the agreement, KGTML will invest in the design and construction of a food-grade clean bulk facility, including a dedicated handling and conveyor system supported by essential infrastructure and utilities, to manage dry agricultural bulk cargo efficiently. LDC has committed to supplying inbound volumes of agricultural commodities to support the operation of the new facility.

    The development is expected to enhance operational efficiency, shorten handling times and strengthen the resilience of Pakistan’s agricultural logistics network, supporting more reliable supply chains across the country.

    Alongside KGTML, AD Ports Group is also developing, operating and managing the Karachi Gateway Terminal Limited (KGTL) container terminal at Karachi Port. As such Pakistan remains a strategic pillar in AD Ports Group’s wider growth plans as the maritime gateway to Central Asia.


    ReplyDelete
  11. Pakistan’s seafood exports to China rise 24% to $240 million in 2025

    https://www.arabnews.com/node/2627913/pakistan


    The Chinese embassy cites strong growth in agricultural trade with Pakistan
    Islamabad aims to expand food exports amid effort to boost foreign reserves
    ISLAMABAD: Pakistan’s seafood exports to China rose 24% year-on-year to $240 million in the first 11 months of 2025, the Chinese embassy in Islamabad said on Wednesday, highlighting growing agricultural trade between the two countries.

    China is one of Pakistan’s largest seafood export markets, alongside destinations such as Thailand, Vietnam and countries in the Middle East. Pakistan exports fish, shrimp and other marine products sourced from coastal areas in Balochistan and Sindh, including Gwadar, Pasni and Karachi, with shipments typically consisting of frozen fish, frozen shrimp and a smaller volume of processed seafood.

    The figure cited by the Chinese embassy fits into a longer upward trend, supported by rising Chinese demand, improvements in cold-chain logistics and market access approvals for Pakistani exporters.

    “Pakistan’s seafood exports to China hit [nearly] $240 million from Jan-Nov 2025, soaring by 24% compared with the same period in 2024, which fully shows the strong vitality of the agricultural trade between China & Pakistan,” the embassy said. “[China looks] forward to more export of high-quality Pakistani products to China in the future.”

    China is Pakistan’s closest regional ally and a key destination for its agricultural and food exports, which Islamabad has been seeking to expand to bolster foreign exchange earnings.

    The two countries enjoy strong strategic and economic cooperation, with Chinese support seen as vital to Pakistan’s efforts to diversify its export base beyond textiles and reduce reliance on external financing.

    Beijing and Islamabad are also working closely on energy and infrastructure projects as part of broader efforts to enhance regional connectivity and support industrial development in Pakistan.

    ReplyDelete
  12. Pakistan advances maritime industry with new container ship

    https://news.az/news/pakistan-advances-maritime-industry-with-new-container-ship

    Pakistan on Tuesday began construction of a 1,100 twenty-foot equivalent unit (TEU) container ship for the Pakistan National Shipping Corporation (PNSC) at the Karachi Shipyard, aiming to bolster the country’s maritime capacity and reduce dependence on foreign shipping, the Ministry of Maritime Affairs said.

    The steel-cutting ceremony was inaugurated by Federal Minister for Maritime Affairs Junaid Anwar Chaudhry, who described the project as an important step toward enhancing the country's shipbuilding capabilities, News.Az reports, citing Xinhua.

    Speaking at the event, Chaudhry said the vessel would be constructed entirely with domestic resources, reflecting growing technical expertise within Pakistan's shipbuilding industry.

    He added that the project is expected to help conserve foreign exchange and expand the operational strength of the national shipping fleet.

    The minister noted that the expansion of the PNSC fleet would contribute to greater efficiency in the supply chain and support the country's trade activities. He also highlighted the project's role in creating employment opportunities for skilled workers in the maritime sector.

    Chaudhry said Karachi Shipyard is gradually emerging as a key center for national maritime development, adding that shipbuilding and ship repair remain central components of Pakistan's maritime policy.

    He emphasized that about 95 percent of Pakistan's trade is conducted through sea routes, underlining the importance of developing a self-reliant and resilient maritime industry to support sustainable economic growth.

    ReplyDelete
  13. Saudi investors eye Pakistan port deal | Semafor

    https://www.semafor.com/article/06/09/2026/saudi-investors-eye-pakistan-port-deal

    Saudi investors are weighing up a deal to create a 140-acre industrial park in Pakistan’s port city of Karachi, in a further sign of warming ties between the two countries. The proposed joint venture will focus on attracting maritime businesses, using land belonging to the Karachi Port Trust.

    Pakistan wants to establish itself as a hub for trade between China and the Gulf, and in recent times has been moving particularly close to Saudi Arabia, not least through a bilateral defense pact signed last year — something that has strained Islamabad’s relations with the UAE and added to the complexity of mediating between the US and Iran to end their war. The conflict, though, has sharpened Saudi Arabia’s logistics sector, with the country’s Red Sea ports seeing a surge in business to service neighboring countries cut off from their usual trade routes due to the closure of the Strait of Hormuz.

    ReplyDelete
  14. Pakistan rattles India with new Chinese-built stealth submarine | South China Morning Post

    https://www.scmp.com/week-asia/politics/article/3358523/pakistan-rattles-india-new-chinese-built-stealth-submarine

    Pakistan has not maintained a meaningful naval presence east of India since its forces were routed there more than half a century ago.
    Since the 1971 war, in which India’s navy blockaded what was then East Pakistan, severed supply lines and accelerated the surrender of Pakistani forces that led to the creation of Bangladesh, Islamabad’s naval ambitions have been effectively confined to the northern Arabian Sea.
    For it to now signal an intention to operate in the Bay of Bengal – home to India’s Eastern and Nicobar naval commands – is “strategically significant less for its immediate military effect than for its audacious geopolitical symbolism”, according to independent maritime security analyst Swaran Singh.

    The Hangor class comes equipped with air-independent propulsion (AIP) technology, enabling the submarines to remain submerged for extended periods – making them stealthier and harder to track than the ageing Agosta vessels they replace.

    Unlike conventional diesel-electric submarines, which must regularly surface or snorkel to recharge batteries, AIP-equipped vessels can operate silently at depth for weeks at a time, dramatically increasing their survivability and strike potential in contested waters.
    Pakistan currently operates a core fleet of five diesel-electric attack submarines and three midget submarines primarily used for special operations. India’s fleet stands at around 19 active submarines, consisting of roughly 16 conventional diesel-electric vessels and three nuclear ballistic missile submarines.
    A parity play?
    Abdul Moiz Khan, a research officer at the Centre for International Strategic Studies in Islamabad, said the Hangor class offered Pakistan “parity” with the growing and much larger Indian fleet through precision rather than numbers.
    “Instead of a quantitative arms race with India, it [Pakistan] aims to maintain a qualitative parity to maintain balance of power and mutually assured destruction,” he said.
    If India were ever to blockade or strike Pakistani naval assets in the Arabian Sea, Khan said the Hangor class would give Pakistan a credible retaliatory reach extending to India’s eastern seaboard.
    But the capability question cannot be separated from its strategic context. Singh points to timing: PNS Hangor’s arrival coincides with the deepening of a China-Pakistan naval partnership that now encompasses joint drills and co-production agreements, as well as China’s expanding Indian Ocean presence.
    The two navies have conducted regular exercises in the Arabian Sea in recent years and the Hangor programme itself reflects a broader pattern of Chinese arms transfers to Pakistan that includes JF-17 fighter jets, frigates and missile systems.

    China permanently stations up to eight warships in the Indian Ocean, operates a military base in Djibouti and has access to ports at Gwadar in Pakistan and Hambantota in Sri Lanka. Its submarines and intelligence vessels have become a routine fixture in waters India once considered its preserve.
    The prospect of Pakistani submarines operating in those same waters, potentially networked with Chinese platforms, raised what Singh described as the spectre of “coordinated strategic pressure on both India’s eastern and western seaboards.”
    Sultan Mahmood Hali, a retired Pakistan Air Force group captain, read the Hangor’s arrival in similar terms: less a single tactical development than a strategic signal.

    ReplyDelete
  15. Pakistan begins commercial shipbuilding after four decades, official says

    https://www.arabnews.com/node/2650238/pakistan

    State-run Pakistan National Shipping Corporation spearheads shipbuilding project at Karachi Shipyard, says official
    Commercial shipbuilding will allow Pakistan to save foreign exchange to import ships, create manufacturing jobs

    ISLAMABAD: Pakistan has started building its first commercial container ship since the early 1980s, an official said on Thursday, implementing a state-backed strategy to modernize the country’s ports, overhaul customs and revive its defunct shipbuilding and ship-recycling industries.

    The project at the Karachi Shipyard & Engineering Works (KS&EW), executed under a contract with the state-run Pakistan National Shipping Corporation (PNSC), ends a four-decade pause in commercial manufacturing of ships. It serves as one of the key elements of a push by the Prime Minister’s Task Force on Maritime Reforms, established in August 2024, to tap into the country’s underutilized blue economy that officials estimate stands at $1billion.


    “For the first time since the early ‘80s, commercial container ship construction has started there [Karachi Shipyard] under a contract signed with the PNSC,” Vice Admiral (retired) Iftikhar Ahmad Rao, the task force’s chairman, said during a press briefing.

    “Construction has already begun, the steel cutting has been completed, and its cost is several million lower than the market rate.”

    The task force identified 99 bottlenecks to maritime issues, Rao said, out of which the task force has implemented 84 of its recommendations within a year. Citing one of them, he said heavy fiscal barriers previously forced private Pakistani shipowners to register vessels with foreign countries such as Panama or Liberia.

    To counter regional competitors such as India, which provides a 30 percent subsidy on shipbuilding, Pakistan has abolished a 22 percent domestic sales tax on vessel purchases and shipbuilding materials, Rao said.

    The overarching goal of these reforms by the task force is to tap into an estimated $100 billion annual blue economy potential by 1947, he said.

    Pakistani officials have said that while the maritime sector currently contributes less than 1 percent to the national GDP, the country aims to enhance this share through modernized ports and more fleets.

    Officials have said that logistical upgrades brought about by the task force’s recommendations have already boosted Pakistan’s standing in the global maritime indexes. Over the past five years, Karachi Port Trust climbed 30 places to 69 in the World Bank’s Container Port Performance Index, while Port Qasim ranked fifth among the world’s fastest-improving container ports.

    These recommendations include reducing average customs clearance times toward a 12-hour target by deploying advanced container scanners, introducing round-the-clock shift structures, and relocating third-party testing laboratories directly inside port premises.

    Pakistan is also moving to revive its once-dominant shipbreaking sector at Gadani, a coastal town in southwestern Pakistan, Rao said. The shipbreaking industry collapsed after failing to meet modern environmental mandates.

    Following Pakistan’s accession to the International Maritime Organization’s Hong Kong Convention for safe ship recycling, five local yards have achieved full compliance, the official said.

    Commercial shipbuilding will allow Pakistan to save foreign exchange earnings that it usually spends on importing ships. This would also create manufacturing jobs and help the South Asian country potentially export ships to other countries in the future.


    ReplyDelete

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