KARACHI: Pakistan’s federal cabinet has approved a ferry service to Oman from the southwestern Pakistani port of Gwadar, the country’s maritime affairs minister said on Friday, saying the move is aimed at boosting trade and tourism.

The development comes months after Pakistan granted its first-ever ferry service license to an international operator, Sea Keepers, for routes connecting Pakistan with Gulf Cooperation Council (GCC) countries Iran.

Officials had hailed the move as a “historic step,” aligned with Pakistan’s National Maritime Policy, and emphasized the opportunity this license creates for boosting regional connectivity, tourism and economic activity via sea.

Pakistan’s Maritime Affairs Minister Junaid Anwar Chaudhry said Islamabad and Oman will sign a memorandum of understanding (MoU) regarding the ferry link and the service will begin soon.

“An Omani delegation will visit Pakistan to finalize arrangements,” he said in a statement shared by his ministry. “New ferry route is expected to increase trade volume and investment. Travel will be easier for Pakistani expatriates.”

Besides trade, the ferry service will promote tourism and cultural ties, according to the maritime affairs minister. It will also reduce travel costs as compared to air transport.

“New maritime corridors will make Gwadar a new hub of economic activities,” he said. “Regional countries will get access to Central Asian markets [through the ferry link].”

Pakistan is currently making efforts to capitalize on its geostrategic location to boost trade and investment alongside tourism as it slowly recovers from a macroeconomic crisis under a $7 billion International Monetary Fund (IMF) program.

The South Asian country also plans to cut container dwell time at its seaports by up to 70 percent to improve trade competitiveness and ease congestion. Pakistan and Sri Lanka are also considering linking their coastal destinations in a bid to boost marine tourism.