LETTER: That maritime transport is backbone of global trade system is a fact. The PTI government has announced country's new shipping policy which, according to the Maritime minister Ali Haider Zaidi, will lift maritime sector to new heights.
He has reportedly said that shipping companies can now take advantage of liberal fiscal concessions and low mark-up rates offered by SBP under Long Term Finance Facility (LTFF) to acquire ships flying the Pakistani flag under the policy which will reduce the annual freight bill worth $5 billion of Pakistan.
It is, therefore, important to note that a country's shipping industry essentially facilitates its trade via transportation of commodities and finished products. A question that begs an answer is whether or not the new shipping policy will achieve any meaningful success in the absence of higher growth which is normally characterized by increased volumes of exports and imports. Unfortunately, that does not happen to be the case at this point in time. Well-intentioned efforts sometimes make matters worse.
Copyright Business Recorder, 2020