Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry 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 amid recent regional tensions.
Speaking during his visit to the Lahore Chamber of Commerce and Industry (LCCI), the minister explained that under the project, private companies would lease land from the government to establish modern oil storage facilities, where oil could be kept and re-exported duty-free. He noted that Pakistan lacked sufficient capital to build large-scale strategic reserves independently, but the proposed model would attract investment while allowing stored reserves to meet domestic needs during crises.
Maritime Reforms and Port Improvements
Chaudhry highlighted that the Ministry of Maritime Affairs had implemented over 100 reforms, resulting in significant improvements in global rankings for both Karachi Port and Port Qasim. Karachi Port moved from 99th to 69th position, while Port Qasim climbed to 56th place. In financial year 2025-26, Karachi Port achieved a record profit of Rs18.8 billion, breaking its 138-year history.
The minister also noted that three new vessels had been added to the Pakistan National Shipping Corporation fleet, increasing overall capacity by 40%, with further expansion planned. The maritime ministry played a key role in averting a shortage of petroleum products during a recent crisis, securing a chartered vessel initially priced at $14 million for just $0.8 million to ensure uninterrupted fuel imports.
Transshipment and Terminal Projects
During wartime conditions and logistics disruptions, port charges for transshipment cargo were reduced by up to 50% to provide relief to the business community. Following the launch of transshipment operations, Pakistani ports handled in 24 days the volume of cargo previously handled in an entire year, demonstrating enhanced capacity and efficiency.
Chaudhry revealed that a technical study for a land-based LNG terminal had been completed, with the project expected to attract investments of $3-4 billion, in addition to a floating LNG terminal. 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 Success
Referring to the fisheries sector, Chaudhry said exports exceeded the $500 million target, reaching $568 million.
LCCI President Faheemur Rehman Saigol noted that despite a coastline of nearly 1,000 km and a strategic location, Pakistan had not fully benefited from the blue economy. He stressed that effective use of maritime opportunities could earn billions in foreign exchange and strengthen regional trade importance. Saigol emphasized the need for port digitalization, stating that delays in cargo clearance increase costs and undermine competitiveness. He called for modern IT systems, automated clearance, efficient scanners, vessel traffic management, and complete digital integration.
Saigol mentioned that Pakistan pays approximately $5 billion annually in maritime freight to foreign operators. Strengthening the national shipping line, expanding its fleet, and adding container vessels could save a significant portion of that foreign exchange. He outlined opportunities in shipbuilding, ship recycling, and fisheries to boost exports and create jobs. He urged completion of Korangi Fish Harbour, port reforms, dredging, a national ports development plan, and business-friendly legislation to help Pakistan become a regional maritime hub.
