Federal Minister for Maritime Affairs Qaiser Ahmed Sheikh said on Saturday that Pakistan is earning a meager 0.5% of GDP (gross domestic product) from maritime operations, a 14-time low compared to the world average of 7% per annum.
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“Some of the developed countries are drawing up to 40% of GDP from the seaborne trade,” the minister said while talking to the media during Khuli Kachehri held at the PNSC Building in Karachi.
Maritime business only contributes 0.5% to Pakistan’s GDP, suggesting huge potential. “We are trying our best to increase fish export to increase maritime participation in GDP. We are searching for plots to establish fish export factories in Korangi.”
He compared the net earnings of Karachi Port Trust (KPT), which remained low at Rs10 billion in the fiscal year 2023-24, to Rs40-45 billion earned by Port Qasim Trust (PQT) in the same year even though both the country’s major seaports handle almost the same volume of import and export cargoes.
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“Each port is handling around 40-45% of national trade, totaling at around 95% trade through the two ports,” Sheikh said, adding that KPT earnings remained low due to over-employment as most of the earnings go to pay monthly salaries and overtime.
He compared the number of employees at KPT stand at 11,000 compared to 4,000-4,500 at PQT. “Despite the double number of employees at KPT compared to PQT, the Karachi Port is paying overtime to its employees. I said if there is over-employment at KPT then transfer some of them to PQT.”
He, however, said the KPT earnings have surged five times to Rs10 billion in 2024 compared to Rs2 billion in 2023, increasing the nation’s earnings from maritime operations and seaborne trade.
“The jump in the net earning is realized partly through renting out and outsourcing berths to Abu Dhabi, Dubai (and others).”
“The Port Qasim’s earning remained high party due to the deposit of surplus funds at banks and earning profit on them,” Sheikh said.
He said the Federal Ministry of Maritime Affairs and the Sindh government have agreed to develop a port at Keti Bandar in the province. “The project would help reduce coal pollution, as the new port under consideration would help transport Thar coal,” he said, adding they are expected to complete work on the feasibility report of the project over the next few months.
Minister Sheikh chaired a Khuli Kachehri session, providing an open platform for employees of maritime organizations and industry stakeholders to voice their concerns, suggestions, and ideas.
The interactive forum enabled direct engagement with the minister, fostering a collaborative environment to address grievances and enhance the maritime sector.
The minister provided stakeholders with a reassuring commitment that their concerns would be duly recognized and their issues promptly addressed, ensuring a timely resolution to their matters.
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