Karachi, May 3, 2024 – In a strategic move aimed at bolstering Pakistan’s maritime sector, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called for the creation of a dedicated maritime regulatory body.
This proposal, presented to Qaiser Ahmed Sheikh, the Federal Minister for Maritime Affairs, seeks to overhaul the regulation of ports, terminals, and shipping lines, enhancing the country’s trade and logistics operations.
During a comprehensive dialogue with the Minister, Atif Ikram Sheikh, President of FPCCI, emphasized the necessity of such an authority to protect, facilitate, and promote Pakistan’s commercial activities. The proposed regulatory body would address several systemic issues currently plaguing Pakistan’s maritime infrastructure and ensure a more streamlined and efficient management of maritime resources.
The Minister, in principle, expressed agreement with the need for a robust regulatory framework and assured FPCCI of his support in the consultative process to establish this authority. Atif Ikram Sheikh also insisted on the inclusion of FPCCI representatives from the outset to ensure that the regulatory framework aligns with the practical realities and challenges of the industry.
The urgency for regulatory reforms was highlighted in a high-profile stakeholder meeting convened by the Ministry of Maritime Affairs. Here, FPCCI represented the collective concerns of Pakistan’s business, industry, and trade sectors. Issues ranging from port inefficiencies to regulatory oversights were discussed, underscoring the broad scope of challenges that the proposed body would need to address.
A key concern raised by Saquib Fayyaz Magoon, SVP of FPCCI, pertained to the infrastructural bottlenecks at Karachi Port, Pakistan’s largest and busiest port. He pointed out that the Netty Jetty interchange, the sole route to this crucial port, if compromised, could cripple the country’s trade. Magoon called for the development of alternative routes to mitigate such risks and ensure continuous flow of trade.
Further emphasizing the need for reform, Asif Sakhi, VP of FPCCI, stressed the importance of fully implementing regulatory measures like SRO. 450 to ensure fair treatment of the trading community. He highlighted the need for customs officers to facilitate traders more effectively by removing ambiguities and anomalies in the current system.
Amidst rising operational costs, Aman Paracha, another VP of FPCCI, called for the rationalization of port and terminal charges to make them competitive with regional standards. He described the current cost pressures from high utility tariffs and an unstable economic environment as “unbearable” for the business community.
Responding to FPCCI’s demands, Minister Qaiser Ahmed Sheikh assured that his ministry would maintain close ties with the apex industry body. He committed to incentivizing industrialists and exporters, ensuring they receive fair treatment under the evolving regulatory framework.
This initiative by FPCCI and the responsive stance of the Ministry of Maritime Affairs represent a critical step towards modernizing Pakistan’s maritime sector. By addressing infrastructural and regulatory challenges, Pakistan aims to enhance its logistical capabilities and solidify its position as a key player in regional trade and commerce.