President FPCCI Statement on the Visit of Federal Minister for Maritime Affairs

Honorable Federal Minister for Maritime Affairs, distinguished guests, ladies and gentlemen,

Today, we stand at a pivotal juncture where the strength and resilience of our maritime sector are not just beneficial but essential for our nation's economic growth and stability. With over 80% of Pakistan's trade volume carried through the sea, the role of our maritime trade lanes and ports, especially the Karachi Port, cannot be overstated. Yet, we face challenges that, if left unaddressed, threaten to undermine the potential of our nation's gateway to the world.

Firstly, the overwhelming reliance on foreign shipping lines for the transportation of our maritime tonnage is a significant concern. This not only leads to increased costs and dependency but also stifles our economic sovereignty. The time has come for us to cultivate and develop our national shipping sector, ensuring that more of our goods sail under the Pakistani flag.

Moreover, the congestion and inefficiencies at the Karachi Port Trust (KPT), where 95% of the cargo is transported by road, causing severe traffic congestion and delays, highlight the urgent need for infrastructure development and optimization. Our traders and the entire supply chain suffer due to the delayed refunds of container security deposits, operational inefficiencies, and the triple charging in dollars, which starkly contrasts with local cost structures.

To navigate these challenges, we propose several critical steps. A consistent, long-term policy framework of at least 30 years, focused on maritime affairs, is paramount. Such policies, backed by supportive financing options, will lay a robust foundation for sustained growth and attract the necessary investments from both domestic and international stakeholders.

Furthermore, we must embrace technology and innovation. The adoption of a digital, web-based system for ship registration, similar to successful models employed internationally, will significantly enhance the efficiency of the Mercantile Marine Department (MMD). A comprehensive review and automation of the MMD's operations will ensure that Pakistan can compete on equal footing in the global maritime arena.

Addressing operational inefficiencies requires not just policy reforms but tangible improvements in our port infrastructure. We advocate for the construction of an elevated expressway linking the northern highways to KPT, the reclamation of land for cargo handling, and the modernization of cargo handling practices to shift from bags to bulks. These steps will dramatically enhance the efficiency, safety, and capacity of our maritime operations.

Lastly, the establishment of the Shipping Rates Advisory Board and a Maritime Ombudsman will provide a structured platform for addressing the concerns of the maritime community and ensuring fair and efficient dispute resolution.

Honorable Minister, the path ahead is challenging, but the rewards are immense. By addressing these critical issues, we can unlock the true potential of our maritime sector, reduce our dependency on foreign shipping, and pave the way for a more prosperous and self-reliant Pakistan.

Let us embark on this journey together, with a shared vision and commitment to transforming our maritime sector into a beacon of efficiency, innovation, and economic strength.

Brig Iftikhar Opel, SI (M), Retd.

Secretary General