'Incentives a must for ship owners'

Experts give shipping policy mixed reviews; stress need for awareness, reforms

KARACHI:

Expressing mixed views about the Pakistan Shipping Policy 2024, experts of the blue economy have called for giving more and more incentives to bring ship-owners to Pakistan with proper awareness while making Pakistan's merchant shipping sector internationally competitive, contributing significantly to foreign exchange earnings.

They said this while attending a workshop on the refurbishment of Pakistan Shipping Policy 2024 held at a local hotel on Monday, organised by the Pakistan National Shipping Corporation (PNSC) and hosted by the Ministry of Maritime Affairs.

Both the panellists, industry leaders, experts, and participants appreciated the policy but presented proposals to fill more gaps in the policy. They stressed that unless the government gives incentives, no ship-owners will come to Pakistan. They said if their children settle abroad, it is difficult to bring them back. Why would ship-owners working in foreign countries come to Pakistan unless they are given tax exemptions, facilities, and other prerogatives, they said.

Delivering a presentation about the important and major chunk of the Pakistan Shipping Policy (PSP) 2024, Director General of Ports and Shipping Alia Shahid said the PSP 24 aims at fostering an eco-friendly and business-friendly environment for the shipping sector. Shahid added that the policy advocates deregulation, simplified procedures, tangible incentives, and assurances to attract a diverse spectrum of investors. It involves fortifying physical infrastructure through the development of ports and enhancing the capabilities of the merchant marine.

She said the policy focuses on easing the registration of vessels, capacity building, and increased tonnage under flagships, while placing emphasis on strategic investments in shipbuilding, port infrastructure, and the regulatory framework. She said the PSP 24 navigates through a trajectory of deliberated interventions, focusing on flag vessel protection and revamping the ship recycling industry, leading to a vibrant shipping industry.

Speaking about the objectives of the policy, she said it is aimed at creating an environment that fosters unimpeded growth in the shipping sector, promoting sustainability, competition, and expansion, and recognising and classifying shipping as a strategic industry.

She also spoke in detail about other points, including ensuring environmental sustainability in the shipping sector, international collaboration and engagement on a bilateral and multilateral level, infrastructure development for the promotion of the shipping sector, and research and development to adopt global standards. She highlighted the incentives offered to encourage the growth of the private/public shipping sector, fleet development of the national flag carrier PNSC, revamping the shipbuilding and repair industry, and upgrading the ship-recycling industry.

She highlighted cargo preference, coastal trade, labour and workforce/manning of Pakistani origin, capacity building and training of seafarers, and implementation, monitoring, review, and continuous improvement of this policy.

Moreover, discussing the promotion of coastal tourism in Pakistan through a greenfield project as a unique initiative, Expert of Maritime Affairs and Ports Management Commander Adil Rasheed said, "There are many gaps in the maritime sector. When there is a gap, there is an opportunity; when there is an opportunity, there is a business. Based on this, I developed several plans, including green shipbreaking and ferry services. We convinced an investor to provide funding, which we used to acquire ferries.

We have purchased two small ferries for tourism, currently docked in Malaysia. We plan to bring them to Pakistan for tourism purposes after arranging the necessary funds. Eighty percent of Karachiites see the sea from Sea View, but how many people view Sea View from the sea? Likely none.

Our goal is to showcase Pakistan's coastline through tourism. Visitors will be able to explore various sea locations, ports, and coastal areas, as cities grow and develop around ports. Karachi was once a coastal city; now, it has grown into a much larger metropolis. Our theme is to introduce the general public to the beauty of Pakistan's coastline."

The main objectives of the policy is to attract private sector investment and simplify business processes to strengthen the shipping sector's economic foundation. It encourages ship-owners of Pakistani origin and foreign ship-owners to register their vessels under the Pakistan flag by offering legislative support, incentives, and protection.