KARACHI: Federal Minister for Maritime Affairs Qaisar Ahmed Sheikh said on Saturday that significant foreign investment is flowing into Pakistan’s ports and shipping sector, establishing the country as a gateway for regional trade.
Speaking to the media at the Karachi Press Club, Sheikh revealed that global players, including Maersk Line, Dubai Port, Abu Dhabi Ports and Hutchison Ports, have expressed interest in investing in the maritime sector here. Hutchison Ports, in particular, is planning further investments in the South Asia Ports Terminal.
The minister noted that Maersk Line has proposed upgrading infrastructure in areas surrounding Karachi’s ports. Also, green technology will be introduced in the shipbreaking industry with support from Denmark.
On the Gwadar Port, Sheikh added that 90 per cent of its investment and management is controlled by China. The government has decided to route 60 per cent of public sector foreign trade through Gwadar. He added that improvements in law and order would attract private-sector shipping companies to this strategically important port.
Sheikh highlighted Pakistan’s advantageous location, positioning its ports as a competitive option for landlocked Central Asian states due to their deep-water capabilities. He further mentioned that Russia and Malaysia have shown interest in using the country’s ports as transshipment hubs, highlighting the country’s strategic location.
The minister expressed optimism about Pakistan’s potential in the maritime sector, which currently contributes only 1.0 per cent to the national GDP -- far below the global average of 7.0 per cent.
He contrasted the performance of public sector entities in the maritime industry with the broader challenges faced by state-owned enterprises (SOEs), which have incurred Rs6 trillion in losses over the past decade. “Despite this, public sector entities like Karachi Port Trust, Port Qasim and Pakistan National Shipping Corporation (PNSC) recorded a combined profit of Rs90 billion in the last fiscal year,” he revealed.
Sheikh attributed the country’s developmental stagnation over the past three decades to internal disputes, during which neighbouring India made remarkable progress.
Chairman of the PNSC Sultan Chawla informed the media that the corporation currently operates only 12 vessels but plans to expand its fleet. “We have placed an order with Karachi Shipyard and Engineering Works for a container vessel with a capacity of 1,100 containers,” Chawla said, adding that the ship is expected to be delivered within two years. Efforts are also underway to channel public sector foreign trade through the PNSC to conserve foreign exchange.
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