Pakistan Paves Way for National Shipping Line, Targeting Massive Forex Savings & Trade Growth

Pakistan Paves Way for National Shipping Line, Targeting Massive Forex Savings & Trade Growth

Strategic Move to Boost Trade & Retain Billions in Forex

Pakistan is set to establish its own national shipping line, a move strongly advocated by FPCCI and agreed upon by the Maritime Affairs Minister. This strategic initiative aims to save the nation PKR 728 billion annually paid to foreign lines, significantly boosting trade and preserving crucial foreign exchange reserves for economic growth.

KARACHI – Pakistan is steering towards establishing its own national shipping line, a pivotal decision aimed at slashing a colossal PKR 728 billion annual payout to foreign shipping entities and bolstering the nation’s economic sovereignty. This significant development follows a strong push from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), with Federal Minister for Maritime Affairs, Junaid Anwar Chaudhry, giving the crucial nod.

The landmark agreement unfolded during a dynamic and consultative meeting at the FPCCI’s main office, Federation House, in Karachi. The session gathered influential voices from Pakistan’s business, trade, and industrial landscapes, alongside key players from terminal operations, existing shipping lines, customs services, and the media.

Atif Ikram Sheikh, President of FPCCI, hailed the minister’s commitment, underscoring the transformative economic impact. “Launching a Pakistani-owned shipping fleet isn’t just about business; it’s a strategic step for our country’s financial independence and a direct boost to our trade logistics,” Sheikh commented. He emphasized that retaining the PKR 728 billion currently lost in foreign exchange would fuel domestic growth.

Minister Chaudhry detailed a forward-looking agenda for the maritime sector. Beyond the national shipping line, he announced intentions to acquire new vessels to expand Pakistan’s fleet. Crucially, Chaudhry also declared an “open-door policy” to promptly address and resolve concerns and grievances from the trading community, enhancing trade facilitation across Pakistan.

In a related significant update, Chaudhry revealed that the Karachi Port Trust (KPT) has successfully reclaimed land valued at PKR 100 billion from illegal encroachments. He extended a clear invitation to the business sector to engage in joint ventures with KPT, transforming this recovered land into modern commercial and business facilities, thereby stimulating port-related economic activities.

Responding enthusiastically, Atif Ikram Sheikh affirmed FPCCI’s full cooperation in the consultative journey to bring the national shipping line to fruition. He strongly urged for FPCCI representatives to be integrated into the planning process from the outset, ensuring the initiative is grounded in practical realities and meets the core needs of Pakistan’s vibrant trade and industry.

Saquib Fayyaz Magoon, Senior Vice President at FPCCI, spotlighted the considerable PKR 300 billion collected annually through the 1.8% infrastructure cess levied on importers by the Sindh Government. He passionately renewed FPCCI’s call for these funds to be strategically invested in upgrading the essential infrastructure linked to ports, industrial zones, commercial centers, and the broader Karachi metropolis.

“This dedicated fund can revolutionize Karachi’s and Sindh’s infrastructure, aligning it with global standards,” Magoon noted. Minister Chaudhry showed readiness to champion this cause, proposing joint discussions with the Sindh Government alongside business leaders for the nation’s economic betterment.

Magoon also raised alarms about the Netty Jetty interchange, the current solitary access point to Karachi Port – the nation’s primary maritime hub. He stressed the critical need for an alternative route to prevent potential trade paralysis during emergencies and to effectively distribute port traffic.

Asif Sakhi, Vice President of FPCCI, emphasized the imperative for seamless coordination among KPT, the State Bank of Pakistan (SBP), Customs authorities, the Maritime Ministry, and the business community itself. “Effective collaboration is key. While customs officials perform their duties, empowering them to proactively clear bottlenecks will significantly aid our traders,” Sakhi advocated, aiming for smoother import-export processes.

Echoing the need for a more competitive environment, Aman Paracha, also a Vice President at FPCCI, called for a review and rationalization of port and terminal charges to align them with regional benchmarks. “Pakistani businesses are already navigating a high-cost environment. We earnestly look to the maritime ministry to provide relief and make our ports more attractive,” Paracha stated.

This series of forward-thinking commitments and the evident spirit of cooperation signal a revitalized approach to Pakistan’s maritime affairs. The initiatives promise not only substantial foreign exchange savings but also a more efficient trade infrastructure and a healthier, more competitive business climate for the nation.

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