Pakistan Maritime Sector, A Massive Untapped Economic Opportunity

Despite its strategic geographic location, Pakistan has failed to fully exploit its maritime potential, with its ports not ranking among the world’s top 60. The country suffers an annual loss of nearly Rs5 trillion ($18 billion) in the maritime sector due to underused ports, tax evasion, illegal trade practices, and inefficient policies, according to a high-level task force report submitted to the prime minister, as reported by The News.

The report reveals that Karachi Port Trust (KPT) is ranked 61st globally, while Port Qasim Authority (PQA) is at 146th. Major financial losses identified include Rs3.19 trillion from underutilized ports, Rs1.12 trillion due to tax evasion, and Rs313 billion lost to fake billing and trade fraud.

Other key factors contributing to the losses are Rs70 billion lost due to transshipment restrictions, Rs196 billion due to the absence of warehousing and value-added services, and Rs60 billion lost from the misuse of Afghan Transit Trade.

KPT, Pakistan’s busiest port, operates at just 47% of its full capacity of 125 million tons, handling over 60% of the country’s imports and exports. Tax collections at KPT have ranged between Rs660 billion and Rs1,470 billion in the last five years. Despite a 3.3% annual growth in demand for port services over the past decade, capacity remains largely underused.

Similarly, PQA, handling 35% of national cargo, uses only 50% of its 89 million-ton capacity, with tax revenue between Rs690 billion and Rs1,140 billion over the same period.

Gwadar Port, with a current capacity of 2.5 million tons, is set to expand to 400 million tons by 2045 as part of its third-phase development plan.

The report highlights Pakistan’s opportunity to capitalize on its 1,050-km coastline, positioning itself as a key player in global maritime trade, especially as the Red Sea crisis disrupts global shipping routes. Major international port operators like Maersk, DP World, and Hutchison Ports have already shown interest in investing in Pakistan’s maritime infrastructure.

Pakistan’s exclusive economic zone, spanning over 240,000 square kilometers and recognized by the United Nations, is another untapped asset. The task force urges immediate reforms in policy, infrastructure, and trade regulations to reduce losses and strengthen Pakistan’s maritime standing