Govt shelves privatisation of Pakistan National Shipping Corporation

The federal government has decided to abandon plans to privatise the Pakistan National Shipping Corporation (PNSC) through a public offering, citing its strategic importance to national security and the economy.

PNSC, established under the Pakistan National Shipping Corporation Ordinance 1979 and listed on the Pakistan Stock Exchange (PSX), is 87.56% owned by the government, while the public and PNSC Employees Empowerment Trust hold the remaining 10.87%. 

The proposed privatisation aimed to generate funding by increasing private shareholding for fleet expansion.

During a high-level meeting, it was informed that PNSC’s classification as a state-owned enterprise (SOE) under the State-Owned Enterprises (Ownership and Management) Policy, 2023, was reviewed by its board of directors. In its May 2024 meeting, the board resolved that PNSC should be retained and categorised as a “strategic state-owned enterprise.”

The board highlighted that PNSC is a profitable entity providing vital services to state institutions, ensuring supply chain schedules, and serving as a second line of defence during conflicts and crises. 

The Ministry of Maritime Affairs also raised concerns about the ageing fleet, recommending privatisation through the stock exchange to fund fleet expansion.

However, ministries consulted on the matter opposed privatisation, emphasising PNSC’s role in maintaining sea lines of communication, reducing war risk surcharges, and transporting sensitive cargo during crises. They argued that privatisation would compromise national security and economic stability.

In September 2024, the Cabinet Committee on State-Owned Enterprises (CCOSOEs) reviewed the case and declared PNSC a strategic SOE, directing it to explore alternative funding sources for fleet expansion. The task force on the maritime sector also endorsed this decision during its October 2024 meeting.

Later, the cabinet reviewed a summary submitted by the Maritime Affairs Division but deferred the final decision on PNSC’s status, noting that it would be considered alongside similar cases.