The government has spent Rs330.526 million to settle outstanding litigation costs related to the detention of Pakistan National Shipping Corporation (PNSC) vessels in South Africa, following alleged claims against Pakistan Steel Mills (PSM), according to a news report.
The Ministry of Maritime Affairs informed about the approval to the Economic Coordination Committee (ECC) in a recent meeting.
In July 2025, PNSC informed the government that an additional $290,200 insurance premium was due, adding to the Rs479.326 million already spent by PNSC on legal expenses and premiums for a surety bond in a South African court.
The court had detained the vessels, MV Chitral and MV Hyderabad, after Coniston Ltd filed a claim against PSM. These ships were released after PNSC provided security backed by the government of Pakistan’s assurance.
The government had agreed to indemnify PNSC against any adverse court ruling in 2017, and the ECC had endorsed this decision. As a result, PNSC was reimbursed Rs149 million, which covered a portion of the legal costs. However, ongoing litigation has led to additional payments, prompting the need for further financial support.
PNSC, a statutory body under the Pakistan National Shipping Corporation Ordinance of 1979, is majority-owned by the government with 87.35% of shares. The current funding approval aims to cover ongoing legal and insurance costs for the vessels while a resolution with Coniston is pursued.
The Ministry of Maritime Affairs, in consultation with the Attorney General’s office, formed a negotiation committee in 2020 to address the PSM liability dispute. A settlement proposal of $6-11 million, down from the original $15 million claim, has been recommended.
After multiple meetings, the ECC approved the release of Rs330.526 million as a technical supplementary grant to PNSC in the fourth quarter of the fiscal year, to ensure the continuation of legal proceedings and resolution of the dispute.
