Pakistan's shipping sector is poised for a significant boost after the Pakistan National Shipping Corporation (PNSC) signed a Memorandum of Understanding (MoU) with China's Shandong Xinxu Group, the Ministry of Maritime Affairs announced on Thursday.
Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry said the agreement marks a key step in enhancing Pakistan-China cooperation in maritime trade and will open the door to future investments and operational partnerships.
Addressing the signing ceremony between the CEO of PNSC and the chairman of Shandong Xinxu Group Corporation, the minister said the understanding would help expand regional trade, improve connectivity, and strengthen Pakistan's position in the global maritime industry.
"This MoU symbolises a growing partnership between Pakistan and China in the maritime domain," he said, noting that it establishes a framework of trust to pursue commercial benefits and attract investment in Pakistan's maritime sector. Under the MoU, the two entities will collaborate in several areas, including the sale and purchase of merchant cargo vessels, such as liquid bulk tankers, dry bulk carriers, and container ships, through joint or individual ownership and profit-and-loss sharing arrangements.
It also allows for Shandong Xinxu to lease vessels to PNSC using various chartering methods, including time, spot, and bare boat charters.
Another key component is PNSC's provision of commercial, technical, and administrative management services for the vessels, covering chartering, marketing, revenue optimisation, maintenance, dry-docking, crewing, and regulatory compliance.
Additionally, the MoU outlines financing mechanisms by Shandong Xinxu for PNSC's investments in ships and floating platforms. These arrangements will follow commercially competitive terms to ensure mutual benefit and financial viability. PNSC, headquartered in Karachi, is Pakistan's national flag carrier operating under the maritime affairs ministry. Shandong Xinxu Group, based in Zibo City, Shandong Province, is a major Chinese enterprise engaged in international trade and shipping.
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