ISLAMABAD: Prime Minister Shehbaz Sharif on Friday directed authorities to lease new ships to expand the Pakistan National Shipping Corporation’s (PNSC) fleet, aiming to reduce the $4 billion annual foreign exchange burden on sea-based trade.

The directive comes as Pakistan looks to bolster its maritime trade capacity and reduce reliance on foreign shipping lines, which officials say significantly contributes to the country’s widening trade deficit and puts pressure on foreign exchange reserves.

Pakistan’s sea trade plays a vital role in its economy, with over 90 percent of the country’s imports and exports transported by sea.

“The prime minister directed that ships be acquired on lease to expand the fleet of the PNSC,” the PM Office said in a statement following a meeting on PNSC affairs chaired by Sharif.

“He noted that due to the limited number of ships in the PNSC fleet, the national exchequer incurs a loss of $4 billion annually in foreign exchange on sea-based trade.”

Sharif instructed authorities to present a strategy within two weeks for the PNSC to eliminate this burden on the national treasury on account of freight charges.

The development comes as Pakistan plans to enhance its maritime trade with other countries, including the East African Community, and establish direct sea links with Kenya, Uganda, Tanzania, Rwanda, Somalia, Burundi, South Sudan and the Democratic Republic of Congo.

In February, Pakistan and Bangladesh also decided to begin passenger and cargo shipping services between the two countries.

The PNSC inducted two $60 million Aframax oil tankers in 2019 to strengthen its oil transportation fleet.

Pakistan also regularly collaborates with its counterparts from various parts of the world to ensure illicit activities such as smuggling, drug trafficking, and piracy are kept in check.