Pakistan has unveiled a comprehensive plan to overhaul its maritime sector, with the aim of increasing revenue from Rs2.61 trillion to an ambitious Rs8 to 9 trillion.
Prime Minister Shehbaz Sharif has approved the initiative, which includes more than 120 action items designed to improve governance, revenue generation, and infrastructure within the sector.
A high-level implementation committee, led by the defence minister and comprising law enforcement and intelligence officials, will oversee the execution of the plan. Among its key initiatives is the establishment of the Pakistan Maritime & Sea Port Authority (PMSPA) by March 30, 2025, along with the appointment of CEOs for Karachi Port, Port Qasim, and Gwadar Port.
The overhaul will also focus on vital areas such as ports’ governance, digitization, shipbuilding, fisheries, and aquaculture. Key steps include enhancing hinterland connectivity for Gwadar Port under the China-Pakistan Economic Corridor (CPEC), constructing breakwaters, modernizing port equipment, and reducing dwell time.
Karachi Port Trust (KPT) is set to operate 24/7, addressing current limitations in freight movement, which is restricted to just seven hours a day. Additionally, the plan aims to standardize port tariffs, expand cargo examination areas, and carry out third-party performance audits of all ports.
Pakistan loses Rs 5 Trillion annually in Maritime Sector due to under-utilization and mismanagement
Pakistan’s maritime sector is currently losing an estimated Rs5 trillion annually, largely due to under-utilized ports, widespread tax evasion, malpractices, and the misuse of Afghan Transit Trade.
A report presented to the prime minister by a high-level task force reveals that under-utilized ports alone are costing the economy Rs3.19 trillion, while tax evasion accounts for Rs1.12 trillion. Fake billing and malpractices lead to losses of Rs313 billion, and restrictions on trans-shipment result in Rs70 billion in lost revenue. Moreover, Rs196 billion is lost due to a lack of warehousing and value addition, with an additional Rs60 billion lost from Afghan Transit Trade abuses.
Despite its strategic location, Pakistan has struggled to fully capitalize on its maritime potential. Karachi Port Trust (KPT), ranked 61st globally, operates at only 47% of its 125 million-ton capacity, while Port Qasim Authority (PQA), ranked 146th, operates at 50% of its 89 million-ton capacity. Tax collection from these ports over the past five years has fluctuated between Rs660 billion and Rs1,470 billion for KPT, and Rs690 billion to Rs1,140 billion for PQA.
Gwadar Port, with a current capacity of 2.5 million tons, is expected to expand to 400 million tons by 2045, upon completion of phase three. The report also highlights Pakistan’s vast 240,000 sq km exclusive economic zone, which is rich in seabed resources such as oil, gas, and minerals. This zone is recognized by the UN as holding immense potential.
Furthermore, the “Red Sea” crisis has created an opportunity for Pakistan to position itself as a key maritime hub, with global shipping giants like Maersk, DP World, and Hutchison Ports expressing interest in investing in the country’s maritime sector. The task force also notes untapped opportunities along the Makran and Sindh coasts, which could drive tourism revenue through the development of beaches, historical sites, and religious landmarks.
To address these challenges, the report calls for a long-term strategy, infrastructure development, and policy continuity to integrate the maritime sector into the national economy.