Shipping Industry of

Pakistan
Presented by: Muhammad Zain
Presented to: Invest Capital
News
 FED on port services to affect shipping traffic (Tuesday, 23 Jun,
2009 ).
 PNSC is planning to scrap seven more of its elderly ships by
the end of next year (Monday, 27 Apr, 2009).
 Seafood exports likely to touch $220 million (Tuesday, 26 May, 2009).
 PNSC will buy four new ships including one oil container and three
cargo ships (Saturday, 31, Jan, 2009).
 PNSC officers’ incentives increased (Sunday, 21 Jun, 2009).
Importance of Transport Sector
 Transportation contributes to the economic, industrial, social and
cultural development of any country.
 It generates employment opportunities.
 Economies with better road network are positioned more
advantageously in terms of overall competitiveness.
 Four basic modes of transport includes:

5. Ocean
6. Air
7. Rail
8. Road
Pakistan Shipping Industry
 Shipping industry in the private sector had a setback in 1974.
 Shipping is a capital intensive industry.
 Three ports includes:

4. Port Qasim
5. Karachi Port Trust
6. Gawadar Port
Overseas Trade—
Size of Fleet
Duty and Taxes for Importer
1. Custom Duty
2. Sales Tax
3. Income Tax
4. Federal Excise Duty
5. Excise and Taxation (ETO)
Benefits to Importer
 SRO 1 509(I) 2007 No Sales Tax
 SRO 2 567(I) 2007 No Custom Duty
 SRO 3 638(I) 2007 Income Tax 1%
 SRO 4 655(I) 2008 No FED

Benefits to Exporter
 Rebate
SWOT Analysis
Strengths
 Capital Intensive.
 Shipping industry and yard has been developing at Gawadar.
 Skilled Labor.
 Three Ports namely Port Qasim, KPT and Gawadar Port.
SWOT Analysis
Weaknesses
 Unnecessary charges.
 Shipment delays and delays in receipts of goods are commonplace.
 PNSC and other ports & shipping organizations are over staffed.
 Nepotism and the lack of management produce inferior quality
services.
 Lack of proper planning and absence of basic coordination with other
transport sub-sectors.
 Port’s are expensive than the regional ports, including Dubai,
Colombo and Singapore.
SWOT Analysis
Opportunities
 Lucrative strategic geographic location.

Threats
 some countries are considering measures to support their economies
by limiting imports.
 High duty and taxes from the government.
 Poor image of the country.
Bibliography
 http://www.brecorder.com
 http://www.pakistaneconomist.com
 http://www.findia.net
 http://www.dawn.com
 http://www.finance.gov.pk
 http://www.vinamaso.net
 http://www.nation.com.pk
 http://www.geo.tv
 Moorad Shipping News