Foreign-flagged transshipment vessels: Fiscal measures package unveiled

ISLAMABAD: Pakistan on Thursday announced a series of incentives aimed at attracting transshipment vessels and promoting environmentally sustainable practices as part of a broader strategy to enhance shipping activity.

Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry while chairing a high-level meeting, unveiled a package of fiscal measures designed to attract foreign-flagged transshipment vessels to Karachi Port, reinforcing its position as a regional maritime hub.

Under the revised framework, vessels carrying dry bulk export cargo will receive a 60 percent concession on port dues, wharfage, and storage charges under the Karachi Port Trust (KPT) tariff.

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Incentives linked to the number of monthly ship calls have been significantly enhanced compared with previous policies.

The minimum transshipment cargo requirement was reduced from 10 percent to 7.5 percent, a move expected to encourage more carriers to utilize Karachi Port.

The base discount has been increased from 5 percent to 20 percent, with additional incentives rising from 2 percent to 5 percent for every extra 5 percent increase in transshipment volumes.

Under the new policy, vessels carrying transshipment cargo equivalent to 50 percent of their Gross Registered Tonnage (GRT) will be eligible for a flat 60 percent discount on port dues, set at USD1.18 per GRT.

Chaudhry described the measures as part of a broader strategy to boost shipping activity, noting that the new incentive structure provides substantial relief in port dues and berthing charges based on performance. The scheme took effect from March 18, 2026.

Copyright Business Recorder, 2026