Reform or regression?

MARITIME MUSINGS

When a sector is finally on the path to sustained growth, the last thing it needs is abrupt, uninformed disruption. Yet that is precisely what Pakistan’s maritime sector now faces under the current government’s so-called 'comprehensive reform plan' announced on April 7. As the former federal minister for maritime affairs, I feel compelled to publicly and unequivocally raise alarm.

At the centre of the government's proposed reforms is the creation of an entirely new bureaucracy, the Pakistan Maritime and Sea Port Authority (PMSPA). On paper, it may sound like institutional innovation, but in reality, it is nothing but another bureaucratic bloat. There is absolutely no need for this when we already have the office of the Director General Ports and Shipping (DGPS), which, if empowered and restructured, can deliver far more efficiently. Instead of creating redundant layers, we must strengthen existing frameworks, improve inter-agency coordination, and ensure the DGPS office is modernised, professionalised and free from political interference. The creation of the Pakistan Maritime and Sea Port Authority is not reform, it is redundancy.

We also already have fully functional port authorities in the form of KPT, PQA, and Gwadar Port Authority. What purpose does another layer of bureaucracy serve, other than to politicise and centralise control?

Another proposed idea is to transfer the control of the Pakistan National Shipping Corporation (PNSC) to entities such as the National Logistics Cell (NLC). This is a deeply misguided attempt to overwrite success with chaos. The PNSC is a profit-making, strategically important national asset. It has shown resilience and consistent performance under challenging global conditions. To hand it over to organisations with no core competence in maritime commerce is just plain reckless. This signals to international investors that Pakistan punishes performance and rewards political maneuvering. It breaks institutional continuity, undermines internal morale and deters both domestic and foreign investment.

Even more troubling is the standardisation of port tariffs across vastly different geographies and operational profiles. Port Qasim, Karachi Port and Gwadar operate in distinct logistical and economic contexts. A one-size-fits-all pricing model will choke regional competitiveness, disincentivise private-sector participation, and ultimately hurt Pakistan’s overall maritime economy.

These aren’t just policy missteps. In fact, they reflect a systemic failure to grasp how complex sectors function. Much like the abrupt U-turn on solar net metering after promoting its expansion, the same erratic governance now risks infecting the maritime sector, with far more severe consequences. No stakeholder consultation. No white paper. No feasibility study. No economic modeling. Just a top-down directive driven by short-term political calculus, not long-term national interest.

Reforms must be grounded in expertise, data and dialogue, not expedient decision-making. The maritime sector, already underutilised, cannot afford another wave of uncertainty. It is extremely critical to recognise that the real issues plaguing our ports are not rooted in maritime operations but in the inefficiencies of customs and other regulatory agencies. The persistent backlog at our ports, often cited as a justification for these sweeping reforms, is primarily due to procedural delays caused by customs, the corrupt practices in the Ministry of Petroleum and the Plant Protection Department.

These agencies are critical cogs in the machinery that manages our maritime trade, yet they operate with outdated systems and procedures that significantly hinder the efficiency of cargo handling and clearance. Instead of dismantling and restructuring entities that are functioning well within the maritime sector, the focus should be on modernising customs and streamlining inter-agency processes to facilitate smoother port operations.

This misdirection not only threatens to destabilise a sector that had seen remarkable growth and restructuring under our administration but also overlooks the root causes of the inefficiencies at our ports. By addressing these systemic issues directly within customs and related agencies, we can enhance operational efficiency at our ports without disrupting the sectors that are already performing well.

The transformation at PNSC laid the foundation for its most successful financial year in history. We acquired two LR-1 product tankers and two Aframax crude oil tankers, expanding the corporation’s carrying capacity from 681,806 DWT to 1,047,957 DWT, the highest in its history. These strategic fleet additions, combined with operational reforms, positioned PNSC for a long-term growth trajectory

Pakistan’s maritime sector had long been stagnant, underperforming, mismanaged and politically compromised. By April 2022, that picture had radically changed, not least due to our pioneering efforts to introduce the concept of the Blue Economy in Pakistan. This initiative aimed to harness the sustainable use of ocean resources for economic growth, improving livelihoods and jobs while preserving the health of ocean ecosystems.

Recognising the importance of direct communication and transparency in governance, we had initiated khuli katcheris, providing stakeholders within the maritime sector and the general public an opportunity to voice their concerns directly to decision-makers. These forums were instrumental in identifying and addressing operational bottlenecks and in fostering a culture of openness and accountability. I also used to personally visit various Chambers of Commerce across Pakistan to address the challenges our business houses faced. This exercise was extremely informative for me as well.

In addition, to ensure that every citizen had a direct line to express grievances or suggestions, I provided a dedicated phone number accessible to all. This initiative not only democratised access to the maritime ministry but also enhanced our responsiveness to the immediate needs of the industry and the public.

KPT’s profit rose from Rs1 billion in 2020 to Rs5 billion in just the first three quarters of FY2021–22. We procured four state-of-the-art ASD LNG-compatible tugs from Turkey, resumed dredging with our own dredgers after years of neglect, initiated the East-West Wharf connectivity bridge, and signed a $3.6 billion MoU for the Karachi Coastal Comprehensive Development Zone (KCCDZ) under CPEC, and not as a loan but as a partnership with KPT, where CRBC is to invest in the project.

Operational efficiency skyrocketed: digital payments were launched for the first time, all three oil piers were renovated, and a brand-new terminal was introduced for domestic ferry services. KPT also led in environmental and social responsibility planting thousands of mangroves, facilitating Covid-19 vaccinations for over 350,000 citizens, and inducting women into the Port Security Force for the first time in its history.

The transformation at PNSC laid the foundation for its most successful financial year in history. We acquired two LR-1 product tankers and two Aframax crude oil tankers, expanding the corporation’s carrying capacity from 681,806 DWT to 1,047,957 DWT, the highest in its history. These strategic fleet additions, combined with operational reforms, positioned PNSC for a long-term growth trajectory.

The results were unprecedented: In 2023, PNSC posted a record net profit of over Rs30 billion after tax, the highest ever in its history -- a staggering 1500 per cent increase over the Rs2 billion average seen between 2008 and 2018. This was not a coincidence but the direct outcome of the groundwork laid between 2018 and 2022.

PNSC implemented a complete ERP system to streamline operations, repaid over Rs13 billion in loans, and opened new commercial channels with global energy giants including Aramco, Shell and Vitol. Our business strategy included diversification into LNG, container shipping, and marine services, all detailed in a five-year roadmap developed for the first time in the corporation’s history. PNSC also achieved full compliance with international safety and environmental standards, earning and maintaining top-tier credit ratings.

PQA’s turnaround was historic. From a Rs10 billion profit in 2018–19, PQA posted a record profit of Rs29.6 billion in 2021–22 — the highest in its history. Between 2018 and 2021 alone, operational profits stood at approximately Rs52 billion, surpassing the Rs49 billion earned cumulatively over the previous 45 years (1973–2018).

Our reforms were not limited to financials. PQA jumped 236 places in the World Bank’s Container Port Performance Index, ranking 81st globally in 2021. It remained fully operational 24/7 during Covid-19 while regional ports shut down. We approved the deepening and widening of an alternate navigation channel and initiated key infrastructure like two LNG terminals, two multipurpose berths, and an integrated container terminal, all cleared at cabinet level.

We also inducted four LNG-compatible ASD tugs and two pilot boats, generating critical port-side capacity. Before that PQA was paying a staggering $29,000 per day in tug rentals for five years. Over Rs4 billion in record revenue was collected from industrial zones, while land corruption and political overstaffing were eliminated through strict enforcement of merit-based hiring and anti-graft policies.

To be continued

The writer is the former federal minister of maritime affairs.