KARACHI:
Since the outbreak of the pandemic, global supply chains have been disrupted. The sudden halt in global activity sent shockwaves through supply chains, shipping networks, and ports. Many ports that had empty containers parked struggled with capacity management because of lockdowns. With the ease in restrictions in different parts of the world, demand for goods also increased, which created chaos along the shipping routes causing severe congestion.
Currently, Pakistan has a trade of over $70 billion yet we rely on foreign assistance to facilitate our shipping needs. Booking a container on a ship has become extremely challenging because of low availability and high rates. Once the booking is completed, the ship arrives in nearly 17 days. This lengthy procedure is backlogging our imports, especially raw materials but also negatively affecting our exports. Resultantly, both import and export prices will increase.
Given the changing global trade dynamics and advancements in technology, Pakistan must reactivate its shipping industry by adding ships and incentivise the private sector to invest. This will help reduce costs of transport, allow capacity building, reduce import, and export prices, as well as create several job opportunities. Even though the Pakistan National Shipping Corporation (PNSC) is a national flag carrier, it does not have ships of its own. It is crucial for Pakistan to strategise a marine policy and work toward facilitating the shipping industry. Some of the necessary things to upgrade the sector are developing port infrastructure, expanding port facilities and providing efficient services. Also, the country can form regional and global agreements with countries that can support us in the process of reviving our shipping industry through trade and investment.
SM Arif
Karachi
Published in The Express Tribune, March 11th, 2022.
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