Arif Habib eyes Pakistan’s blue economy after PIA acquisition, in talks with PNSC management: report

After acquiring a controlling stake in the Pakistan International Airlines (PIA), Arif Habib is now eyeing Pakistan’s blue economy, with interest in the National Shipping Corporation (PNSC), signalling his intent to tap into the country’s underdeveloped maritime potential.

Speaking to journalists in Karachi, the businessman revealed that the new PNSC management had invited him for discussions on the corporation’s future.

The federal government has finalised a plan to revive and expand PNSC, which includes bringing the National Logistics Cell into the shipping business. This initiative is part of broader efforts to reduce reliance on foreign vessels and minimise foreign exchange outflows related to freight costs.

Pakistan’s maritime sector remains largely underutilised, despite an estimated potential of over $100 billion in sustainable commercial ocean resource usage. Currently, the sector contributes less than 0.5% to the national GDP, leaving significant growth opportunities untapped.

To address this, reports suggest that the Pakistan National Shipping Corporation (PNSC) plans to expand its fleet from 10 vessels to 54 by 2030. This move is aimed at capturing a larger share of the estimated $6 billion paid annually in foreign freight charges to international shipping lines. 

Currently, PNSC carries just 11% of Pakistan’s commercial cargo, with nearly 90% of imports and exports being handled by foreign shipping companies. The expansion plan is intended to retain a larger portion of the $6 billion spent on freight each year within the country. However, many of PNSC’s existing vessels are nearing the end of their operational life and will become uneconomical to operate beyond 2030. 

Furthermore, new environmental regulations introduced by the International Maritime Organization (IMO) require shipping operators to cut carbon emissions, adding an additional challenge.

As part of its growth strategy, PNSC recently launched the construction of a new 1,100 TEU container vessel at Karachi Shipyard and Engineering Works (KSEW). The new vessel will be constructed using domestic resources and expertise.

Addressing the steel-cutting ceremony, Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry described the project as a significant milestone for Pakistan’s maritime sector, highlighting the government’s commitment to revitalising both the shipping and shipbuilding industries.