ISLAMABAD: Pakistan’s maritime sector suffers an annual loss of nearly Rs5 trillion ($18 billion) due to underutilized ports, tax evasion, fraudulent practices, and inefficiencies in trade and value addition, according to a high-level task force report.
The report, presented to the prime minister, highlights that:
Underutilized ports account for a staggering Rs3.19 trillion loss.
Tax evasion in the maritime sector costs Rs1.12 trillion annually.
Malpractices and fake billing lead to a Rs313 billion shortfall.
Restrictions on transshipment result in Rs70 billion in missed revenue.
Lack of warehousing and value addition costs Rs196 billion.
Misuse of Afghan Transit Trade contributes to a Rs60 billion loss each year.
Pakistan’s Ports Lagging in Global Rankings
Despite its geo-strategic location and immense maritime potential, Pakistan’s ports fail to rank among the world’s top 60. Currently, Karachi Port Trust (KPT) stands at 61st place, while Port Qasim Authority (PQA) ranks 146th globally.
Pakistan’s demand for port services has grown 3.3% annually over the past decade, yet:
KPT operates at just 47% of its 125 million-ton capacity while handling over 60% of the country’s trade.
PQA operates at 50% of its 89 million-ton capacity, handling 35% of national cargo.
Gwadar Port, currently at 2.5 million tons, aims to expand to 400 million tons by 2045.
Opportunities and Strategic Importance
The report underscores that Pakistan’s coastline could become an economic powerhouse. The Red Sea crisis presents a unique opportunity for Pakistan to capitalize on its geo-strategic position, attracting interest from global maritime giants like Maersk, DP World, and Hutchison Ports.
Additionally, Pakistan’s Exclusive Economic Zone (EEZ) of over 240,000 sq km, recognized by the United Nations, holds untapped resources such as oil, gas, and minerals, necessitating long-term investment and policy continuity.
With proper development, Pakistan’s historical sites, beaches, and religious landmarks along the Makran and Sindh coasts could also generate substantial tourism revenue.
Call for Action
The task force recommends urgent reforms, infrastructure development, and policy continuity to maximize the maritime sector’s economic potential and curb financial losses.
Story by Ansar Abbasi
