Pakistan Plans To Lease Ships, Aims For $4 Billion Forex Fix

Pakistan is taking steps to lease ships for the Pakistan National Shipping Corporation (PNSC) to mitigate a significant foreign exchange drain, amounting to an estimated $4 billion annually.

Prime Minister Shehbaz Sharif has directed officials to proceed with this initiative to expand PNSC’s fleet, after a meeting on PNSC operations in Islamabad.

The primary motivation behind this decision is the substantial expenditure of foreign exchange on sea-borne trade due to an insufficient number of vessels in PNSC’s existing fleet. The government aims for this plan to provide a clear strategy to eliminate this considerable annual financial burden on the national treasury.

PNSC was established in 1979 through the merger of the National Shipping Corporation (NSC) and the Pakistan Shipping Corporation. Currently, it operates with a fleet of ten ships of various types, collectively capable of carrying 724,643 tons of cargo. The corporation functions under the administrative control of the Ministry of Maritime Affairs, Government of Pakistan.

Earlier in February, Prime Minister Shehbaz Sharif approved a comprehensive reform program aimed at revitalizing Pakistan’s maritime sector. This broader initiative includes the restructuring of PNSC and the modernization of the National Ports Master Plan, indicating a concerted effort to enhance the country’s maritime capabilities.