KARACHI: Pakistan’s Maritime Affairs Minister Junaid Anwar Chaudhry on Thursday announced fiscal incentives to attract transshipment vessels to Karachi Port, as Islamabad strives to position the port as a regional maritime hub while shipping lines adjust regional routes amid tensions linked to the Iran war.
The Middle East war involving the US, Israel and Iran has pushed up oil and gas prices higher and heightened risks for shipping across Gulf waters. This has prompted logistics companies to reassess routes and rely more heavily on regional hubs outside potential conflict zones.
Karachi Port said last week that two vessels carrying transshipment cargo docked simultaneously there. The port said its simultaneous handling of containers reflected the port’s strong operational capacity, efficient port infrastructure and strategic geographic advantage.
“The new incentive structure provides significant relief in port dues and berthing charges based on performance, effective from March 18, 2026,” Chaudhry said in a statement issued by the maritime affairs ministry.
The minister announced the incentives while chairing a high-level meeting to boost shipping activity and reward environmentally sustainable practices, the ministry said.
It added that as per the revised framework, vessels carrying dry bulk export cargo will receive a 60 percent concession on port dues, wharfage and storage charges under the Karachi Port Trust (KPT) tariff.
The minister said incentives linked to the number of monthly ship calls had been significantly 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,” Chaudhry said.
He said the base discount for vessels has 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.
As per the new policy, vessels carrying transshipment cargo equivalent to 50 percent of their gross registered tonnage (GRT) will be eligible for a 60 percent discount on port dues.
Large container ships with at least 25 percent transshipment cargo will be eligible for up to a 50 percent discount on applicable wet charges, the ministry said.
Meanwhile, ships using environmentally friendly fuels will receive an extra 5 percent reduction in berthing charges.
“By incentivizing both operational scale and environmental responsibility, KPT is driving the modernization of Pakistan’s blue economy,” he said.
