Pakistan has offered up to 60 percent cuts in port dues and other charges to attract transshipment vessels to Karachi Port, the maritime affairs minister said, as the country seeks to boost its role in regional shipping.

The measures come as countries in South Asia and the Gulf compete to position their ports as key transshipment hubs, where cargo is transferred between ships en route to final destinations. Pakistan has long aimed to increase activity at Karachi Port and nearby facilities to capture a larger share of regional shipping flows.

The initiative also reflects broader government efforts to improve trade infrastructure and reduce logistics costs, which analysts say remain a constraint on Pakistan’s export competitiveness.

The new incentive structure provides significant relief in port dues and berthing charges based on performance, effective from March 18, 2026,” Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry said in a statement.

Under 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 tariff.

The statement said the policy lowers the minimum transshipment cargo requirement from 10 percent to 7.5 percent and increases base discounts from 5 percent to 20 percent, with additional incentives tied to higher cargo volumes.

Vessels carrying transshipment cargo equivalent to at least 50 percent of their gross registered tonnage will qualify for a flat 60 percent discount on port dues, with charges set at $1.18 per GRT.

Large container ships carrying at least 25 percent transshipment cargo will also be eligible for up to a 50 percent reduction in wet charges, while ships using environmentally friendly fuels will receive an additional 5 percent discount on berthing charges.

Chaudhry said the incentives were designed to encourage more carriers to route cargo through Karachi.

“This step is expected to encourage more carriers to utilize Karachi Port,” he said.
Source: Arab News