Maritime minister says Energy City initiative could attract foreign investment, strengthen energy security, and boost Pakistan’s role as a regional energy hub.
Federal Minister for Maritime Affairs Muhammad Junaid Anwar has revealed that several oil-producing countries have expressed interest in storing oil in Pakistan under the government’s ambitious Pakistan Energy City project, a development that could strengthen the country’s energy security and attract significant foreign investment.
Speaking during a visit to the Lahore Chamber of Commerce and Industry (LCCI) on Saturday, the minister said the project had gained momentum following recent regional geopolitical tensions.
He explained that private investors would lease land from the government to establish modern oil storage facilities, allowing oil-producing nations to store petroleum products in Pakistan and re-export them on a duty-free basis.
Junaid Anwar noted that Pakistan currently lacks the financial resources required to build large-scale strategic oil reserves independently.
However, the proposed investment model would enable foreign participation while ensuring that stored reserves could be utilized during emergencies or supply disruptions, enhancing the country’s energy resilience.
The minister highlighted a series of reforms undertaken by the Ministry of Maritime Affairs, stating that more than 100 initiatives had been implemented to improve efficiency and competitiveness.
He said Karachi Port Trust (KPT) and Port Qasim had recorded notable improvements in global rankings, while KPT achieved a historic profit of Rs18.8 billion during the current fiscal year.
Discussing shipping sector developments, he said three new vessels had been inducted into the Pakistan National Shipping Corporation (PNSC) fleet, increasing overall capacity by 40 percent.
He added that the ministry successfully ensured uninterrupted petroleum imports during a recent crisis by securing a vessel at a significantly reduced charter cost.
The minister also outlined several major infrastructure projects, including a floating LNG terminal, a land-based LNG terminal expected to attract between $3 billion and $4 billion in investment, and the $1.4 billion Sea 2 Steel shipbuilding project at Port Qasim. New cargo terminals, integrated oil storage facilities, and container terminals are also planned.
LCCI President Faheem Ur Rehman Saigol emphasized that Pakistan’s nearly 1,000-kilometre coastline offers enormous opportunities in the blue economy.
He stressed the need for port digitalization, improved cargo clearance systems, and maritime sector reforms to enhance trade competitiveness and generate billions of dollars in foreign exchange earnings.
He added that strengthening the national shipping industry, expanding port infrastructure, and promoting fisheries, shipbuilding, and ship recycling could help Pakistan emerge as a leading regional maritime and logistics hub while creating thousands of jobs and boosting exports.