Karachi’s business community today raised alarm over shipping lines charging exorbitant foreign exchange rates, reportedly surpassing even black market levels, and demanded the urgent establishment of a regulatory body to rein in their “exploitative conduct.” The grievances were aired during a meeting with Federal Minister for Maritime Affairs Muhammad Junaid Anwar, who was urging private sector investment to capitalize on anticipated growth in global trade.
Speaking at the Karachi Chamber of Commerce and Industry (KCCI), Minister Junaid Anwar invited business leaders to present feasible proposals for a joint-venture industrial park on 140 acres of available Karachi Port Trust (KPT) land, where the port could act as a strategic partner. He encouraged the formation of a private sector consortium to operate a modern terminal, assuring that the government would provide the land.
In response, Chairman of the Businessmen Group (BMG), Zubair Motiwala, underscored an urgent infrastructure crisis, calling for the construction of a bypass road for the port city. He noted that Karachi, the nation”s economic hub, uniquely lacks this essential facility, leading to severe traffic congestion and accidents. Motiwala estimated a dedicated corridor could slash congestion by nearly 70% and proposed using a portion of the over Rs.250 billion held in the Sindh government”s Infrastructure Development Cess fund to finance the Rs.70-80 billion project.
KCCI President Muhammad Rehan Hanif detailed severe operational hurdles plaguing traders, including daily backlogs at the Karachi International Container Terminal (KICT) and congestion from the absence of pre-arrival parking facilities. He criticized terminals operating at full capacity for still being permitted to dock more vessels, exacerbating delays. Hanif demanded a regulatory authority to monitor shipping agents and freight forwarders to ensure fairness.
Highlighting the currency issue, the KCCI President pointed out that some shipping lines are charging as high as Rs.296.20 per US dollar, demanding that at minimum, the open market exchange rate should be applied if not the official State Bank rate.
BMG Vice Chairman Jawed Bilwani spoke on the broader challenges crippling industry, questioning how businesses can operate “merely on patriotic slogans” when facing severe shortages and high costs of gas and electricity. He stated that Pakistan”s energy costs are significantly higher than in its export markets, eroding competitiveness. Bilwani also drew attention to 654 industrial plots in Port Qasim, for which purchasers have been unable to get physical possession for over two decades, urging the Minister to facilitate a resolution.
Addressing the state of the Pakistan National Shipping Corporation (PNSC), Minister Anwar acknowledged it could not single-handedly reduce freight-related losses. He announced plans to increase its fleet by 50%, with agreements for five new vessels in their final stages, and accelerated the target of expanding to 30 vessels from three years to just one. Conversely, Zubair Motiwala lamented PNSC”s decline due to “bureaucratic mismanagement” and suggested leasing its vessels to the private sector to enhance efficiency.
The Minister assured the business community of his full support, stating the Ministry would back any legitimate complaints filed by the KCCI against port or terminal entities. He affirmed that upon taking office, he had decided that port lands must be used strictly for trade and industrial development, not real estate dealings.
Looking forward, Anwar revealed plans for a 700-acre Pakistan maritime industrial zone to construct “Made in Pakistan” ships, complete with an on-site steel melting unit and ship-breaking yard. He also promoted investment in Gwadar, citing improved security and opportunities in tuna processing, date production, and livestock exports.
The KCCI leadership also formally requested that a representative from the Chamber be included on the boards of the Port Qasim Authority and PNSC to ensure the business community”s inclusion in policy decisions.