Pakistan spends an estimated $6-8 billion annually on freight charges due to its dependence on foreign shipping companies, as the country’s only national shipping line, the Pakistan National Shipping Corporation (PNSC), operates without a single cargo container ship, The News reported.
The reliance on foreign vessels has placed a persistent strain on foreign exchange reserves, adding to the country’s economic challenges.
The Defence Ministry sources, citing findings from the Task Force on the Revamping of the Maritime Sector, stated that PNSC had initiated a project to construct Pakistan’s first 1,120 Twenty-Foot Equivalent Unit (TEU) container ship at Karachi Shipyard. Estimated at Rs24 billion, the project was significantly cheaper than an equivalent foreign-built vessel costing Rs32 billion.
However, the plan was abruptly suspended a year ago, delaying a potential shift towards domestic shipbuilding and resulting in revenue losses and increased costs. The project has now been revived, with authorities viewing it as a step toward strengthening the maritime sector.
The decline of Pakistan’s ship-breaking industry has also been highlighted as a concern. The Gadani ship-breaking yard, once the world’s third-largest in the 1980s, now generates only Rs0.3 billion annually.
The sector has struggled due to outdated infrastructure, weak connectivity, and non-compliance with international regulations such as the Hong Kong Convention (HKC). Meanwhile, India and Bangladesh have modernised their industries, with 90 and six HKC-compliant yards, respectively.
With the HKC set to take effect in July 2025, experts warn that Pakistan risks losing what little business remains unless urgent upgrades are made. Authorities are now focusing on key initiatives, including expanding local shipbuilding facilities, modernising Gadani through foreign investment and regulatory reforms, and developing shipyards at Port Qasim and Gwadar in collaboration with international firms.
Additionally, classifying inter-port cargo movement as ‘Coastal Trade’ is under consideration to support local shipping operations and lower inland transport costs.
The maritime sector holds significant economic potential for Pakistan. Shipbuilding is a labour-intensive industry that could generate employment, while a national container fleet could reduce freight costs and limit foreign exchange outflows. Upgrading Gadani and establishing new shipyards could position Pakistan as a regional maritime hub, attracting foreign investment and boosting revenues.
