Economic Survey 2025-26 says higher finance costs and lower other income offset strong revenue and gross profit growth.

ISLAMABAD: The Pakistan National Shipping Corporation (PNSC) posted robust revenue growth during the first nine months (July–March) of FY2025-26, although profitability declined sharply due to higher finance costs and a significant reduction in other income, according to the Economic Survey of Pakistan 2025-26.

The survey shows that PNSC’s revenue increased by 28.7% to Rs36.56 billion during July–March FY2025-26, compared with Rs28.40 billion in the corresponding period of FY2024-25. The improvement reflects stronger business activity and higher operating income during the period under review.

Revenue and gross profit strengthen

PNSC recorded a notable improvement in its core operations, with gross profit rising to Rs11.46 billion from Rs8.98 billion in the same period of the previous fiscal year, representing an increase of 27.6%.

However, operating expenses also edged higher. Administrative, impairment and other expenses increased to Rs1.62 billion, compared with Rs1.50 billion during July–March FY2024-25.

Despite the rise in operating costs, the corporation maintained healthy gross margins, supported by stronger shipping revenues.

Other income falls sharply

The most significant factor behind the decline in profitability was the steep reduction in other income.

According to the Economic Survey, other income dropped by 62.1%, falling from Rs10.78 billion in July–March FY2024-25 to Rs4.09 billion during the corresponding period of FY2025-26.

The decline substantially reduced operating earnings despite higher revenue and gross profit.

As a result, operating profit fell by 46.5% to Rs9.45 billion, compared with Rs17.67 billion a year earlier.

Higher finance costs pressure earnings

PNSC also faced a sharp increase in finance costs during the review period.

Finance costs rose to Rs991.37 million, compared with Rs320.27 million in the corresponding period of the previous fiscal year, representing an increase of more than 209%.

The higher borrowing costs, combined with lower other income, pushed profit before taxation down by 52.5% to Rs8.00 billion, compared with Rs16.82 billion in July–March FY2024-25.

Financial performance comparison

Financial Indicator (Rs ‘000)	July–March FY2025	July–March FY2026	Change
Revenue	28,404,570	36,558,352	+28.7%
Expenses	(19,422,582)	(25,100,147)	+29.2%
Gross Profit	8,981,988	11,458,205	+27.6%
Administrative, Impairment & Other Expenses	(1,497,906)	(1,622,558)	+8.3%
Other Income	10,775,013	4,085,834	−62.1%
Operating Profit	17,672,171	9,447,473	−46.5%
Finance Cost	(320,269)	(991,373)	+209.6%
Profit Before Taxation	16,824,485	7,996,012	−52.5%

The Economic Survey of Pakistan 2025-26 indicates that while PNSC delivered strong growth in revenue and gross profit during the first nine months of FY2025-26, the sharp decline in other income and substantially higher finance costs significantly eroded profitability. The figures underscore the impact of non-operating income and financing expenses on the corporation’s overall financial performance despite continued strength in its core shipping operations.