Pakistan offers up to 60% port charge relief to attract foreign ships to Karachi Port

The Pakistan government has approved a package of fiscal incentives offering up to 60% concessions in port-related charges to attract foreign-flagged transhipment vessels to Karachi Port and increase shipping activity.

The measures were announced by Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry while chairing a high-level meeting, according to an official statement issued on Thursday.

Under the revised Karachi Port Trust (KPT) tariff, vessels carrying dry bulk export cargo will receive a 60% reduction in port dues, wharfage and storage charges. The new incentive structure has been made effective from March 18, 2026.

The policy also links concessions to transhipment volumes and vessel activity. The minimum transhipment cargo requirement has been reduced from 10% to 7.5%, while the base discount has been increased from 5% to 20%. Additional incentives will range from 2% to 5% for every 5% increase in transhipment volumes.

Vessels carrying transhipment cargo equal to 50% of their gross registered tonnage (GRT) will qualify for a flat 60% discount on port dues, with the rate set at $1.18 per GRT.

Large container vessels carrying at least 25% transshipment cargo will be eligible for up to a 50% reduction in applicable wet charges.

An additional 5% discount on berthing charges will be available for ships using environmentally friendly fuels, linking incentives to environmental considerations.

The minister said the revised framework is intended to increase vessel traffic, improve port utilisation and position Karachi Port as a competitive option for transhipment in the region.