Pakistan faces annual loss of 5 trillion rupees in maritime sector
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.
