By Abbas Nazil
Pakistan is emerging as a hub for regional trade, driven by substantial foreign investments in its ports and shipping industry, Federal Minister for Maritime Affairs, Qaisar Ahmed Sheikh, revealed on Saturday during a media briefing at the Karachi Press Club.
Sheikh announced that international players, including Maersk Line, Dubai Port, Abu Dhabi Ports, and Hutchison Ports, have shown keen interest in the country’s maritime sector, with Hutchison Ports planning further investments in the South Asia Ports Terminal.
Maersk Line has proposed upgrading infrastructure in Karachi’s port areas, while Denmark is set to assist in introducing green technology to modernize the ship-breaking industry.
Highlighting the strategic importance of Gwadar Port, Sheikh noted that 90 percent of its investment and management is controlled by China.
To boost its utilization, the government has decided to route 60 percent of public sector foreign trade through Gwadar, leveraging its deep-water capabilities to attract private shipping companies.
Sheikh emphasized Pakistan’s advantageous geographical location, positioning its ports as ideal trade gateways for landlocked Central Asian states.
Interest from Russia and Malaysia in utilizing Pakistani ports as transshipment hubs further underscores the nation’s strategic significance.
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Despite these opportunities, the maritime sector currently contributes a modest 1.0 percent to Pakistan’s GDP, far below the global average of 7.0 percent, indicating significant growth potential.
Contrasting the maritime sector’s performance with challenges faced by state-owned enterprises (SOEs), Sheikh revealed that SOEs have incurred a staggering Rs6 trillion in losses over the past decade.
However, public sector entities in the maritime industry, such as Karachi Port Trust, Port Qasim, and the Pakistan National Shipping Corporation (PNSC), collectively posted a profit of Rs90 billion in the last fiscal year.
Chairman of PNSC Sultan Chawla disclosed plans to expand the corporation’s fleet, which currently operates only 12 vessels.
The PNSC has commissioned Karachi Shipyard and Engineering Works to construct a container vessel with a capacity of 1,100 containers, expected to be delivered within two years.
Efforts are also underway to route public sector foreign trade through the PNSC to conserve foreign exchange.
Sheikh attributed Pakistan’s developmental stagnation over the past three decades to internal political disputes, contrasting it with India’s significant progress during the same period.
He expressed optimism that improvements in law and order and robust investment would unlock the full potential of the maritime sector, transforming Pakistan into a pivotal player in regional and global trade.
Source: The News
