KARACHI: Federal Minister for Maritime Affairs Qaiser Ahmed Sheikh on Saturday said that significant foreign investments are being channeled into Pakistan’s ports and shipping sector, making the country a regional trade hub.
“Maersk Line, Dubai Port and Abu Dhabi Ports have shown interest in investing in Pakistani ports, while Hutchison Ports is planning additional investments in a South Asian port terminal,” Sheikh said. He noted that Maersk Line also offered to upgrade the infrastructure around Karachi ports and introduce green technology in the ship breaking industry with the help of Denmark.
Speaking about Gwadar Port, he said: “Ninety percent of the investment and management of the port is with China. The government decided to direct 60% of the public sector’s foreign trade through Gwadar.
He said Pakistani ports are an attractive option for landlocked Central Asian countries due to their deep-sea capabilities. “Russia and Malaysia have also expressed interest in using Pakistani ports for transshipment due to their strategic location,” Sheikh added.
The minister admitted that the maritime sector contributes only one percent of Pakistan’s GDP, compared to the global average of seven percent. He said public sector entities in the maritime sector, including Karachi Port, Port Qasim and Pakistan National Shipping Corporation, recorded profits worth Rs90 billion in the last fiscal year, despite the challenges faced by state-owned enterprises. “State-owned companies have incurred losses worth 6,000 billion rupees over the past ten years,” he noted.
Sultan Chawla, Chairman of PNSC, said: “PNSC currently has 12 vessels, and we are working to expand this fleet. We have placed an order with Karachi Shipyard and Engineering Works for a 1,100 TEU container ship, which will be delivered within two years. He added, “Efforts are underway to transfer the foreign trade of public sector bodies to the National Social Security Corporation to provide foreign exchange.”
Sheikh attributed internal disputes to obstructing development in Pakistan over the past three decades. “During this period, India has progressed significantly,” he said.