Maritime policy with incentives on cards

Country's strategic location, improved ports likely to woo global investors

KARACHI:

Federal Minister for Maritime Affairs Qaiser Ahmed Sheikh has announced that a new maritime policy will be introduced either later this year or at the beginning of next year. Under this policy, foreign investors will be provided with tax incentives and other facilities.

He said 90% of global trade depends on the shipping industry. He invited international shipping companies to invest in Pakistan, stating that the country's geographical location is of great strategic importance, providing easy access to China, Central Asian states, and the Middle East.

Sheikh made these remarks while speaking at an international conference titled "The Hong Kong Global Maritime Trade Summit: Risk & Resilience in an Age of Disruption," organised by the International Chamber of Shipping (ICS) at the Hong Kong Convention and Exhibition Centre on Monday, according to a statement released by the Ministry of Maritime Affairs.

He said Pakistan's ports have been significantly improved, due to which Maersk Line, Mediterranean Shipping Company, Hutchison, and Abu Dhabi Ports Company have signed memoranda of understanding and agreements to invest in Pakistan's maritime sector and shipping industry. "Our deep ports at Port Qasim and Gwadar have significant handling capacity, but the current transportation is less than half of their potential. This is in contrast to the nearby ports like Dubai, Jebel Ali, and Salalah, which are quite busy," he said.

He also highlighted the ongoing rapid development at Gwadar Port, hoping that it will soon be fully operational. Recently, the federal cabinet directed that 50% of trade will be routed through this port, which has immense potential to trade with China, Russia, Hong Kong, and other countries.

The minister noted that Pakistan is making its maritime sector environmentally friendly in line with the standards set by the International Maritime Organisation (IMO), with less than 1% contribution to global carbon emissions, yet it is one of the top 10 countries impacted by climate change. Despite this, Pakistan is striving to transition to carbon-free ships and is actively implementing a decarbonisation policy.