ISLAMABAD — The government has introduced a package of fiscal incentives offering up to 60 percent concessions in port charges to attract foreign-flagged transshipment vessels to Karachi Port, aiming to increase shipping activity and improve Pakistan’s regional maritime standing.
Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry announced the measures while chairing a high-level meeting, according to a statement issued on Thursday.
Strategic Vision
The minister described the incentives as part of a broader strategy to boost maritime activity and reward environmentally sustainable practices.
“The new incentive structure provides significant relief in port dues and berthing charges based on performance, effective from March 18, 2026,” Chaudhry said.
Key Incentives
Under the revised Karachi Port Trust (KPT) tariff, vessels carrying dry bulk export cargo will receive a 60 percent concession on port dues, wharfage, and storage charges.
The minister said incentives linked to the number of monthly ship calls had been enhanced compared to previous policies, while the minimum transshipment cargo requirement had been reduced from 10 percent to 7.5 percent.
“This step is expected to encourage more carriers to utilize Karachi Port,” he said, adding that the base discount has been increased from 5 percent to 20 percent, with further incentives rising from 2 percent to 5 percent for every additional 5 percent increase in transshipment volumes.
Volume-Based Discounts
Under the policy, vessels carrying transshipment cargo equivalent to 50 percent of their gross registered tonnage (GRT) will qualify for a flat 60 percent discount on port dues, with the rate set at $1.18 per GRT.
Large container ships carrying at least 25 percent transshipment cargo will be eligible for up to a 50 percent discount on applicable wet charges.
Green Shipping Bonus
Ships using environmentally friendly fuels will receive an additional 5 percent reduction in berthing charges. The minister said this initiative aims to position Karachi as a cost-effective and efficient gateway for global shipping while supporting operational scale and environmental responsibility.
Regional Competition
The move comes as regional ports compete aggressively for transshipment business. By reducing costs and simplifying requirements, Pakistan hopes to capture a larger share of regional shipping traffic that might otherwise pass through Dubai, Colombo, or other established hubs.
Implementation
The new tariff structure took effect on March 18, and port authorities are now working to communicate the changes to international shipping lines and freight operators. Initial responses from the shipping industry are expected in the coming weeks.
