Federal Minister for Maritime Affairs Muhammad Junaid Anwar has announced significant progress on the government’s Energy City project, revealing that several oil-producing countries have expressed interest in storing oil in Pakistan following recent regional tensions. Speaking during his visit to the Lahore Chamber of Commerce and Industry (LCCI), he outlined a model where private companies would lease land from the government to establish modern oil storage facilities, allowing duty-free storage and re-export of oil.
Energy City Model Attracts Investment
Anwar explained that Pakistan lacks sufficient capital to build large-scale strategic reserves independently. However, the proposed model would attract foreign investment and enable the stored reserves to meet domestic needs during emergencies. The initiative aims to transform Pakistan into a regional oil storage hub, leveraging its strategic location.
LCCI President Faheem Ur Rehman Saigol welcomed the minister and highlighted the untapped potential of Pakistan’s blue economy. Despite a coastline of nearly 1,000 kilometres and a strategic geographical position, the country has not fully capitalized on maritime opportunities. Saigol urged accelerated digitalization at ports, citing that unnecessary delays in cargo clearance increase business costs and undermine global competitiveness. He called for modern IT systems, automated clearance mechanisms, efficient scanners, vessel traffic management systems, and complete digital integration among institutions.
Port Reforms Yield Global Ranking Improvements
Federal Minister Junaid Anwar reported that the Ministry of Maritime Affairs has implemented over 100 reform measures. Karachi Port Trust (KPT) improved its global ranking from 99th to 69th, while Port Qasim rose to 56th. KPT achieved a record profit of Rs18.8 billion in the current year, the highest in its 138-year history.
Three new vessels were added to the Pakistan National Shipping Corporation (PNSC) fleet, increasing overall capacity by 40 percent, with further expansion planned. The ministry played a key role in ensuring no shortage of petroleum products during the recent crisis. A vessel initially available at a charter cost of $14 million was secured for $0.8 million to guarantee uninterrupted fuel imports.
Transshipment and Infrastructure Developments
During wartime conditions and logistical disruptions, port charges on transshipment cargo were reduced by up to 50 percent. After launching transshipment operations, Pakistani ports handled within 24 days a cargo volume equivalent to what was previously managed over an entire year, demonstrating enhanced capacity and efficiency.
Anwar announced that a technical study for a land-based LNG terminal has been completed, expected to attract investment of $3 billion to $4 billion. A $1.4 billion “Sea 2 Steel” shipbuilding project is being launched at Port Qasim, along with a multipurpose cargo terminal, an integrated oil terminal storage facility, and new container terminals. The Manora Shipyard is being revived to avoid sending ships to Singapore or China for repairs.
Fisheries Sector Exceeds Targets
Fisheries exports surpassed the $500 million target, reaching $568 million. Tuna fish alone offers export potential worth billions of dollars and is receiving special attention. LCCI President Faheem Ur Rehman Sehgal noted that Pakistan pays approximately $5 billion annually in maritime freight to foreign operators. Strengthening the national shipping line, expanding its fleet, and adding more container vessels could retain a significant portion of this foreign exchange domestically. Opportunities in shipbuilding, ship recycling, and fisheries could boost exports and create thousands of jobs.
Sehgal stressed the need for completing Korangi Fish Harbour, port reforms, dredging, a national ports development plan, and business-friendly legislation. The Lahore Chamber pledged full cooperation to the Ministry of Maritime Affairs to help Pakistan emerge as a strong regional maritime hub.
