Naveed Ali Khan
The maritime reforms are vital for Pakistan for several reasons. First and foremost, the implementation of internationally recognized certifications in the maritime sector could unlock its vast potential, benefiting the entire economy, including traders, importers, and exporters. Additionally, essential reforms such as aligning dock labor wages with industry standards and optimizing staff at Port Qasim Authority (PQA) and Karachi Port Trust (KPT) are crucial for improving the efficiency and competitiveness of Pakistan’s ports. Furthermore, obtaining and complying with international certifications would compel authorities to ensure that maritime activities meet the highest global standards, ultimately enhancing compliance and bolstering the competitiveness and profitability of the maritime business. The lack of attention to these reforms not only hinders trade but also exacerbates macroeconomic imbalances, putting pressure on employment and consumption statistics. Therefore, maritime reforms are critical for Pakistan’s economy and its competitiveness in the global market.
For weeks on end, the maritime sector has been tirelessly advocating for urgent and crucial reforms, underlining the potential benefits for the entire economy. However, it appears that these urgent pleas have fallen on deaf ears in Islamabad, creating a sense of immediate need for action.
The Seatrade Group of Companies has reiterated that simply adhering to internationally recognized certifications could unleash the sector’s vast potential, ultimately benefiting traders, importers, and exporters. Despite this, authorities have yet to acknowledge this fundamental aspect, leaving the audience hopeful for the potential benefits that could be realized with these reforms.
Various stakeholders have voiced their grievances about the state of Pakistan’s ports, describing them as “unbearable”. Dredgers are reported to be non-operational due to mismanagement and corruption in the tendering process, rendering the entire operation excessively costly. Calls for essential reforms, such as aligning dock labor wages with industry standards and optimizing staff at Port Qasim Authority (PQA) and Karachi Port Trust (KPT), have been met with silence.
Obtaining and complying with international certifications could address many of these issues by compelling authorities to ensure that maritime activities meet the highest global standards. However, it seems that the opposite is occurring. Instead of enhancing compliance and bolstering the competitiveness and profitability of the maritime business, certain ministries have dismantled mechanisms designed to foster collaboration between the public and private sectors.
The abrupt discontinuation of the National Trade and Transport Facilitation Committee (NTTFC) by the commerce ministry, for instance, has been deemed detrimental to the business community and essential sea trade. This decision not only hindered trade but also exacerbated macroeconomic imbalances, exerting downward pressure on employment and consumption statistics.
The maritime sector, encompassing all facets related to maritime activities, is intricately linked to the broader economy. Countries endowed with natural ports make concerted efforts to nurture and promote sea trade. Regrettably, this is not the case in Pakistan. Despite possessing three ports, the government’s policies, or lack thereof, have hindered their potential. As a result, the ministries of finance, maritime affairs, and shipping and ports must address numerous pressing questions. Why have these issues been neglected for so long? Why have we deliberately diminished our natural competitive advantage in such a critical sector?
Amidst claims of a historic transformation in the economy, heightened urgency for reforms, and the need to expand the revenue base, the low priority given to the maritime sector raises doubts about the government’s commitment to identifying sectors where reforms would yield substantial returns.
Having exhausted all avenues to convey its concerns, the maritime sector can only hope for meaningful progress within the relevant ministries. The government’s failure to capitalize on the opportunity to reform the maritime sector amid a fiscal emergency is disheartening, especially considering their promises to revitalize the economy. It is a missed opportunity that cannot be overlooked, and the audience should feel the urgency of the situation.
