Promoting industry: New shipping policy awaiting cabinet’s nod

Minister says it will exempt new vessels from sales tax and duties

KARACHI: A new shipping policy will soon be approved by the cabinet and it will exempt new vessels from sales tax and duties to promote the shipping industry in the country, said Federal Minister for Maritime Affairs Syed Ali Haider Zaidi.

Speaking to the industrialists at the Korangi Association of Trade and Industry (KATI) on Friday, he said that the new policy was aimed at regulating the shipping companies in Pakistan.

He detailed that following the implementation of the said policy, freight rates would be charged in local currency instead of dollars, which would significantly slash the cost of doing business.

Zaidi pointed out that massive corruption has been unearthed in Karachi Port Trust’s land approval process as many bigwigs had exploited the loopholes present in the procedure.

Ministry seeks 20-year tax break for shipping companies

He added that evidence of corruption against a former minister had been forwarded to the National Accountability Bureau (NAB) for investigation.

“Now, a comprehensive policy for land approval has been devised, which will restrict corruption during the process,” he added.

The minister underlined that following implementation of the new policy, the companies willing to establish LNG terminals in Pakistan would have to pay $10 million for the land and government guarantees would not be provided to them.

“Prime Minister Imran Khan had to take some tough decisions for the survival of the country and we are very much aware that high energy prices coupled with a hike in the interest rate hinder the expansion of industries but now, the situation will get better,” he assured.

Zaidi said that to decrease the heavy traffic pressure on the city, a proposal of the establishment of refined oil storage near the refineries has been sent to the Ministry of Petroleum. He shared that KPT was ready to bear the expenses of reconstruction of some parts of Lyari expressway to make it viable for heavy traffic subject to a share in toll charged from passengers using the road.

Responding to a query, he said that a proposal to operate a ferry service to the Middle East has been sent to the Ministry of Defense for a no-objection certificate.

He detailed that the ferry would run from Pakistan to Jeddah, Basra, Amman along Dubai. He detailed that the service would facilitate transportation of cargo as well as pilgrims willing to perform Hajj and Umrah.

He added that pilgrims from Middle Eastern countries could also join the journey on economical charges and shared that the government would welcome the private sector to operate the service once the no-objection certificate is received.

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Also speaking on the occasion, KATI President Sheikh Umer Rehan said that only one out of three oil terminals was functional in Karachi port and urged the government to use the non-functional terminals for cargo handling as well.

He suggested that a direct road from KPT to a northern bypass should be constructed to decrease the flow of heavy vehicles into the city.

He also mentioned that the price of industrial land in Bin Qasim Industrial Area was exorbitant, which acted as an obstacle in the way of industrialisation. Rehan also asked the minister to control the prices of industrial land at the Port Qasim Industrial Area.

Published in The Express Tribune, December 22^nd, 2019.

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