Pakistan suffers an annual loss of 5 trillion rupees (18 billion USD) in the maritime sector due to underutilization of ports, tax evasion, corruption, fake billing, the misuse of the Afghan Transit Trade route, and lack of value addition.
According to a report compiled by a high-level task force, the government incurs a loss of 3.19 trillion rupees due to ports not being used to their full capacity. Tax evasion in the maritime sector leads to a loss of 1.12 trillion rupees, while corruption and fake billing account for 313 billion rupees. Restrictions related to transshipment cause a loss of 70 billion rupees, lack of warehouses and value addition leads to a 196 billion rupee loss, and the misuse of the Afghan Transit Trade system results in a loss of 60 billion rupees annually .
The report, which has been submitted to the Prime Minister, highlights that despite Pakistan’s immense potential and geo-strategic advantages, the country has not been able to fully capitalize on its resources.
It is noted that none of Pakistan’s ports are ranked among the world’s top 60 ports. According to sources, Karachi Port Trust is ranked 61st globally, while Port Qasim Authority is ranked 146th.
Over the last decade, Pakistan has seen an annual increase of 3.3% in demand for port services. Despite being the busiest port in the country, Karachi Port Trust uses only 47% of its total capacity (125 million tons). Karachi handles more than 60% of the country’s imports and exports, with tax collection ranging between 660 billion to 1.47 trillion rupees in the past five years.
Port Qasim Authority, which handles 35% of the country’s cargo, uses just 50% of its capacity (89 million tons). Over the past five years, tax collection from this port ranged from 690 billion to 1.14 trillion rupees.
After the completion of the first phase, the current capacity of the Gwadar Port Authority (GPA) stands at 2.5 million tons, which is expected to increase to 40 million tons by 2045 with the completion of the third phase.
The report states that Pakistan’s coastline could become the economic backbone of the country. Among other factors, the crisis in the Red Sea could provide a rare opportunity for Pakistan to leverage its geo-strategic position in the maritime sector. This potential has been recognized by global companies such as Maersk, DP World, and Hutchison Ports, which are offering to invest in Pakistan’s maritime and related sectors to secure their financial interests.
The report also notes that globally, around 1.9 million trained seafarers work in the shipping industry. Pakistan has traditionally provided a suitable number of trained seafarers, but this number has dwindled over time.
Highlighting the untapped potential along the Makran and Sindh coasts, the task force suggests that developing these areas with tourism-focused initiatives—such as historical sites, archaeological landmarks, and religious sites—could significantly boost revenue from tourism.
Additionally, the report discusses Pakistan’s exclusive economic zone, which spans over 240,000 square kilometers and is recognized by the United Nations. This zone is rich in resources, including oil, gas, and other minerals. Exploring and integrating these resources into the national economy requires strategic human resources, infrastructure, and long-term policy continuity.
Earlier, United Marine Agencies (UMA) in Pakistan, in collaboration with HMM, has connected Karachi Port to HMM Shipping Company’s new ‘India North Europe Express’ service.
According to the press release, this new service will provide a direct sea link between Western India and Northern Europe and will commence its global operations with its first departure from Karachi on 5th February 2025.
During the inauguration ceremony held in Karachi, the chief guest, Vice Admiral Faisal Abbas, Commander Karachi of the Pakistan Navy, addressed the launch of the new service and stated that Pakistan is moving towards expanding and strengthening its maritime activities through international partnerships.
He said that sea communication lines allow nations to extend beyond their land borders, providing key routes for trade, as today, 75% of global trade occurs via sea routes.
He further emphasized that due to its geographical significance, Pakistan holds an important position globally, serving as a gateway to Central Asia, Southwestern Asia, and the Persian Gulf.
The Commander of Karachi added that Pakistan has marine, fisheries, mineral, and energy resources that can generate additional revenue for the economy.
The report stated that the ‘India North Europe Express’ service will start its first journey from Karachi, with the route including ports: Karachi – Hazira Mundra Nhava Sheva – Colombo – London Gateway – Rotterdam – Hamburg – Antwerp – Karachi. This weekly service, with 6,000 TEU container vessels, will complete its journey in 11 weeks (77 days).
The CEO of United Marine Agencies mentioned that UMA is providing excellent shipping services for Hyundai Merchant Marine (HMM) in Pakistan. Representing globally recognized shipping lines, UMA handles cargo to various key destinations worldwide.
The ‘India North Europe Express’ service by HMM is launched in collaboration with Ocean Network Express (ONE) and United Marine Agencies.
