Pakistan Emerging as Regional Transhipment Hub

Government seeks business-friendly port regime to attract foreign cargo

March 25, 2026 at 4:16 PM
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Key Points:

  • Port charges dut up 60 per cent to attract transhipment traffic
  • Incentives Introduced For Foreign-Flagged Vessels
  • Government Calls For Simpler Customs And Terminal Procedures
  • Backlog of thousands of containers highlights capacity challenges

ISLAMABAD: Pakistan is stepping up efforts to position itself as a regional transhipment hub, introducing incentives and operational reforms for attracting foreign cargo amid shifting global trade dynamics.

Speaking at a review meeting, Maritime Affairs Minister Junaid Anwar Chaudhry said a competitive and business-friendly port environment was essential for the country to capitalise on emerging trade opportunities.

The government already introduced financial incentives to attract foreign-flagged transhipment vessels, including discounts of up to 60 per cent on port charges for ships carrying dry bulk export cargo.

Officials said measures designed to lower business costs and boost port activity, particularly as regional supply chains adjust to ongoing geopolitical disruptions.

Minister urged customs authorities and terminal operators to rationalise their charges and simplify procedures to facilitate maritime trade, stressing that reducing operational bottlenecks is critical to making Pakistani ports a preferred transhipment destination.

The meeting reviewed a range of operational issues, including port competitiveness, container scanning, customs clearance processes, and handling auctionable containers.

Port operations recently expanded, with authorities reporting uninterrupted activity during Eid holidays, during which around 15,000 containers and 22 vessels were handled.

However, structural challenges remain. Officials said about 3,700 containers are still awaiting clearance or auction, underscoring persistent congestion pressures at key terminals.

Customs authorities reported that almost 1,000 containers have already been auctioned, with a further 200 in process, part of efforts to clear backlogs and free up space for incoming cargo.

Industry representatives highlighted additional inefficiencies, noting some containers remain at terminals for years due to legal and administrative complications, and called for limits on storage duration to improve turnover.

Shipping sector participants welcomed recent amendments to the transhipment policy but said further clarity was needed on duties, taxes and liabilities To Ensure Smoother Implementation.

The government said it remains committed to resolving stakeholder concerns and improving coordination among agencies to strengthen trade flows and regional connectivity.

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