Ports/terminals efficiency, cost savings: PM directs ministry to conduct third-party audit

ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Ministry of Maritime Affairs (MoMA) to conduct third-party audit/time release studies of ports/terminals to determine efficiency and cost achievements, benchmarked against regional and international ports, well-informed sources told Business Recorder.

He gave these instructions during his visit to Karachi on July 6, 2024, wherein, he presided over different meetings with federal and provincial government authorities.

The prime minister directed the secretary MoMA and the secretary Ministry of Communication to conduct a third-party audit of the Lyari Expressway to recommend on design aspects for allowing containerized cargo 24/7 to facilitate trade. The Ministry of Railways will submit a plan for enhancing capacity for moving containers to and from Karachi Port Trust (KPT).

Secretary Finance, MoMA and Government, State Bank of Pakistan (SBP) will work out a viable plan to cater for the foreign exchange needs of port authorities to facilitate their day-to-day operations.

The Secretary MoMA to prepare a comprehensive proposal regarding the winding up of the Karachi Dockyard Labour Board. A comprehensive proposal to be submitted to the prime minister for addressing issues of shipping lines affecting their efficiency (such as exorbitant charges and closure of operations on the ports due to five-day work week) while recommending the best international regulatory standards for the shipping sector. The MoMA will prepare and present a report on dredging as a standalone issue for optimal use of ports.

Other decisions during meetings are as follows; (i) MoMA to prepare a presentation for the prime minister on all foreign director investment (FDI) projects at ports (ongoing and future);(ii) Pakistan National Shipping Corporation (PNSC) to explore the option of procuring ships on “pay as you go” terms and submit proposals;(iii) Ministry to prepare a comprehensive shipping policy with an objective to raise the number of Pakistani flag carrier ships in order to save foreign exchange on shipping services. An internationally competitive incentive package to be an integral part of the policy;(iv) Ministry of Railways to present a feasibility proposal for taking over coal conveying system at Pakistan International Bulk Terminal, Port Qasim;(v) MoMA to make a presentation to the Prime Minister on July 20, 2024, after resolving all inter-ministerial issues discussed during the visit. Only high-level issues requiring intervention of the Prime Minister to be presented;(vi) MoMA to conduct a feasibility study to utilise K-T Bandar for Thar coal project;(vii) FBR to present Port Community System to Prime Minister on July 20, 2024;(viii) FBR to evaluate the option of developing customs inspection areas adjacent to ports for examination purpose;(ix) Minister for Power to meet and brief industrialists/exporters on tariff reforms for the industry; and (x) Minister for Finance and Chairman FBR to visit business chambers and hold post budget briefings.

Copyright Business Recorder, 2024