KARACHI: Maritime experts commenting on the draft of new shipping policy pointed out that Port Qasim is revising its LNG Tariff while still there is a need to reduce port dues and a suitable off-port area should be designated where ships can receive bunkers and provisions without paying the port dues.

Despite 3 million TEUs/ Containers volume at ports PNSC has no container vessel despite having dozens of CEO’s and doing captive bulk and crude trade of PSO. Around $ 5 billion goes out as parents to foreign liners. PNSC has no LNG Carrier or FSRU despite 9 LNG Vessels arriving monthly.

The establishment of a shipyard is a suitable proposal, but the repair facilities are very limited in Pakistan. While encouraging the owners of the international tonnage, it will also be wise to support the owners of tugs, dredgers, and boats, as they could provide a substantial boost to the national economy. By offering financial incentives, simplifying regulations, and maintaining high safety and operational standards, Pakistan can position itself as a competitive flag state. However it is unlikely that Pakistani ship owners having ships under FOC will bring their fleet under national flag. They said that many issues and gaps remaining unresolved in this draft; for example Bunkering? No PNSC ship is fueled in Pakistani ports but in UAE ports.

Export shipper incentive like freight tax ignored completely. Sea farers tax matter ignored. Port infrastructure-exclusivity, implementation of Competition Commission not considered. Exclusivity is making cost of transport and cost of doing business/ exports extremely high. Tonnage tax and registration fee not considered. Shipping target 12 percent 2025 which is since last 25 years same policy. The Shipyard is in domain of Ministry of Defence Production; so what is Ministry of Maritime’s role? In 1937 rule of business shipyards was in domain of MOD so does Maritime Ministry have a role? Experts want to know.

They further inquired that Korangi Harbor is under Ministry of Maritime Affairs but Karachi Fish Harbor not - why one is there other is not? How can Deep Sea Fishing Policy be implemented? Why has Deep Sea Fishing Policy been kept in abeyance since a decade? KPT Tariff remains at 25% whereas 20 percent policy was suggested but ignored. There is no repair berth in KPT or at PQA no repair berth too. There is no incentive on vessel for repair purpose. So the ships go to UAE for repair and huge forex drains out. There is Special Economic Zone 2012 Act, Export processing zone, Gwadar free zone, and Twarqi Special zone under board of investment Free zone in Karachi.

Anomaly as Federal administrative areas comes under federal government whereas; development comes under chief minister of that province but approval granted by board of investment. No “one window” operation here so who is the architect of this policy? How will any Free Trade Zone function as there is a multiplicity of jurisdiction?