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Business Recorder
4 days ago
- Business
- Business Recorder
Minister orders removal of encroachments from port lands
KARACHI: Federal Minister for Maritime Affairs, Muhammad Junaid Anwar Chaudhry, directed immediate removal of encroachments from port lands. He also ordered the formation of a joint force to protect port property from illegal occupation and misuse. The Federal Minister was chairing a high-level progress review meeting on Monday to assess and accelerate ongoing land reform initiatives at the Port Qasim Authority (PQA) and Karachi Port Trust (KPT). The meeting brought together senior officials to evaluate current progress, discuss key strategies, and identify coordinated solutions to long-standing issues of land encroachment and underutilization at the two major seaports. During the meeting, the Federal Minister underscored the strategic importance of safeguarding and developing ports land for sustainable economic growth and investment. He suggested both PQA and KPT to form a joint anti-encroachment force with the mandate to secure and protect the property of both ports from illegal occupation and misuse. The Minister emphasized that this dedicated force should operate with full authority and coordination with local law enforcement agencies to ensure effective on-ground enforcement. 'The maritime sector is a critical pillar of Pakistan's economic framework. We cannot allow valuable portland, which holds tremendous economic potential, to remain encroached or underutilized,' said Minister Chaudhry. 'It is imperative that both PQA and KPT work together to enforce land protection measures, implement digital transparency, and enable private sector investment through proper planning and legal frameworks.' Management of the Port Qasim Authority (PQA) briefed the Minister on the ongoing initiatives being undertaken as part of a new comprehensive master plan. This master plan will include the regularization and optimal use of leftover pockets of land, reclaimed areas, and currently non-utilized plots. These spaces are intended to be repurposed for high-value investment, commercial use, and strategic infrastructure development aligned with national economic priorities. PQA also plans to launch a digital land automation system, a dedicated module designed to improve transparency, traceability, and operational efficiency in land management, officials informed the meeting. This system will be fully integrated with the PQA Port ERP, allowing seamless data synchronization, secure digital record-keeping and real-time decision-making. The Karachi Port Trust (KPT) management also presented their updates and reaffirmed their commitment to addressing the issue of encroachment on port land. The KPT officials informed the Federal Minister that enforcement actions are already underway and that the Trust is closely collaborating with the Survey of Pakistan, which is actively conducting a detailed land demarcation survey to accurately identify and map the boundaries of KPT land holdings. This demarcation exercise is expected to pave the way for stronger legal action against encroachments and provide a foundation for more informed land-use planning. Minister Junaid Anwar Chaudhry reiterated the urgency of translating planning into tangible results. The Minister also expressed his resolve to personally oversee the progress of these initiatives and announced that monthly review meetings will be held to monitor implementation and resolve inter-agency bottlenecks. He urged all maritime stakeholders to align their activities with the national vision of sustainable port development and economic resilience. Copyright Business Recorder, 2025
Business Recorder
17-05-2025
- Business
- Business Recorder
Global shipping lines: Pakistan's major ports among most expensive
ISLAMABAD: Pakistan's major ports remain among the most expensive for international shipping lines in comparison to key regional ports. This was revealed in a special report presented to the Standing Committee on Planning, Development and Special Initiatives. The report analysed data of key regional ports to determine the reasons why Gwadar port is not performing, as expected. Gwadar, envisioned as a flagship project of China-Pakistan Economic Corridor (CPEC), was projected to rival regional ports and attract international shipping lines. However, recent figures paint a bleak picture of underutilization and slow operational uptake, calling into question the port's strategic and economic viability. Significant investment coming into port, shipping sector: minister Charges for a 50,000 Gross Registered Tonnage (GRT) vessel were the highest at Karachi Port Trust (KPT) with port dues of USD 18,900 - the highest among six ports surveyed. Pakistan's two other major ports, Port Qasim Authority (PQA) and Gwadar, charge USD 15,000 each, significantly more than their regional counterparts. In contrast, ports in the United Arab Emirates and Oman offer substantially lower rates. Jebel Ali Port (UAE) charges just USD 3,406, while Sohar Port (Oman) is even more competitive at USD 3,000. Iran's Chabahar Port, a key competitor to Gwadar, charges USD 7,970, offering a middle ground between Pakistan and Gulf ports. The comparative analysis of South Asian and Gulf ports revealed stark underperformance of Pakistan's maritime infrastructure, with its major ports lagging far behind regional counterparts in both cargo handling and annual mercantile traffic. According to 2021 data, UAE's Jebel Ali Port maintained its position as the region's shipping giant, handling 14.4 million TEUs (Twenty-foot Equivalent Units) the standard measure of cargo capacity. Colombo Port in Sri Lanka ranked second with 5.1 million TEUs, followed by Salalah (4.4 million) and Sohar (3.5 million) in Oman. Karachi Port Trust (KPT) managed only 2.2 million TEUs, and Port Qasim Authority (PQA) lagged further behind at 1.05 million TEUs. Most notably, Gwadar Port (GPA) a cornerstone of the CPEC recorded an almost negligible 0.0023 million TEUs, despite massive investment and strategic aspirations. The report also evaluated annual mercantile traffic flow, where Sohar Port led with 4,807 vessel movements, closely followed by Colombo at 4,310. In comparison, KPT and PQA recorded 1,600 and 1,535 respectively. Gwadar's traffic was a mere 22, while Iran's Chabahar Port, a key competitor, showed modest yet higher activity at 41. Industry analysts have warned that these figures reflect deep-rooted structural inefficiencies and a lack of competitive pricing in Pakistani ports. These numbers are not just a statistic, they are a wake-up call, standing committee members argued. High port dues, outdated handling facilities, and weak hinterland connectivity are costing Pakistan billions in missed trade opportunities, they concluded. Copyright Business Recorder, 2025
Business Recorder
22-04-2025
- Business
- Business Recorder
Decisions, orders: Ministries' delay ‘tactics' draw the ire of SIFC's EC
ISLAMABAD: The Executive Committee (EC) of the Special Investment Facilitation Council (SIFC) has expressed annoyance at the ministries for allegedly using delaying tactics in adherence to its decisions and instructions in letter and spirit, well-informed sources told Business Recorder. These assertions were made by the EC in its previous meeting after claiming that the Ministries are implementing its decisions half-heartedly. 'The forum observed that decisions rendered by various committee of SIFC (AC, EC &IC) are not being adhered to in true letter and spirit,' the sources added. PQA land sale: PM Shehbaz constitutes inquiry body The forum reiterated that directions of the SIFC are binding and may be taken in true letter and spirit in accordance with para 10 E & H of SIFC Act. The forum also raised concerns over inordinate delays in the approval of summaries/other documents due to lack of pursuance by the parent Ministry/Department. The SIFC-EC directed that the parent Ministry initiating the summary for approval of Prime Minister, Federal Cabinet, the Economic Coordination Committee (ECC) of the Cabinet or any other forum shall be responsible to expedite the summary at each stage of process including seeking input of involved stakeholders. In future no excuse regarding the delay of summaries will be accepted. On the issue of continuation of LPG and Liquid Chemical Terminal at PQA, the EC was informed that PQA and EVTL signed the 2nd Supplemental Implementation Agreement (SLA) on January 15, 2025 and 3rd SLA on February 24, 2025. EVTL submitted an initial proposal on January 15, 2025. The meeting was further informed that multiple meetings were held between PQA and EVTL teams in presence of representatives of MoMA, SIFC and Ministry of Finance. Detailed analysis of EVTL's model, study of its financial statements and contractual obligations was carried out to establish model's veracity. Resultantly, EVTL submitted their final proposal on February 26, 2025. On February 27, 2025, PQA Board proposed to approve extension in concession term in favour of EVTL for another 30 years from June 18, 2026 on BOT and non-exclusive basis subject to concurrence by MoMA and SIFC. The SIFC-EC endorsed the PQA Board decision for extension in concession term and asked MoMA to immediately process the summary to seek approval from the Federal Cabinet through Cabinet Committee on SIFC (CCoSIFC) without any further delay. On navigational channel dredging, Chairman PQA stated that tender documents for dredging project were published on February 13, 2025. Pre-bid meeting was held on February 24, 2025 which was attended by six companies. He further stated that responses to queries submitted by dredging companies are being processed according to procedures outlined in the tender documents. Bid submission date was April 7, 2205. Dredging project after completing all codal formalities is likely to commence in 3rd quarter of 2025 and completed by third quarter of 2027. The meeting decided that MoMA/PQA to conduct a case study for identification or underlying causes leading to delay in dredging since 2010, so as take preventive measures in future. Both MoMA and PQA were also directed to ensure that the timelines for capital dredging must be followed without delays. Copyright Business Recorder, 2025
Express Tribune
26-03-2025
- Business
- Express Tribune
'Port Qasim land to be used for industry'
Listen to article Federal Minister for Maritime Affairs Junaid Anwar Chaudhry has announced that the land belonging to Port Qasim will be developed for industrial purposes, ensuring that only genuine investors acquire land through a transparent and fair process. He underscored that allottees who fail to establish industries within the stipulated time frame will face the cancellation of their allotments. Speaking to media representatives after his visit to the Port Qasim Authority (PQA) on Wednesday, the minister highlighted the Sindh government's active efforts to attract investors for infrastructure development in Karachi. This initiative is being undertaken in collaboration with the Ministry of Maritime Affairs to boost industrial activity and economic growth in the region. He further disclosed that the process for Denmark's $2 billion investment in Pakistan's port sector is currently underway. Danish investors, in cooperation with the Pakistani government, are working towards expediting the implementation of this significant foreign investment. Regarding the promotion of lower-grade officers within the ministry, Chaudhry assured that opportunities for career advancement would be provided to lower-grade officers. He added that external expertise would only be sought when absolutely necessary to enhance the ministry's operations. Commenting on the Pakistan National Shipping Corporation (PNSC), the minister clarified that ships were sold only after completing their operational lifespan. He assured that these vessels were being replaced with newer ships under improved deals to ensure efficiency and reliability in maritime operations. To streamline the administrative affairs of maritime institutions, the Ministry of Maritime Affairs has directed relevant institutions to submit their strategic plans.
Express Tribune
09-03-2025
- Business
- Express Tribune
PM forms committee to probe Port Qasim land scandal
Listen to article Prime Minister Shehbaz Sharif has constituted a three-member inquiry committee to investigate the alleged irregularities in the leasing of valuable Port Qasim Authority (PQA) land, following explosive revelations by Senator Faisal Vawda that the land was leased at throwaway prices during the current government's tenure. According to a notification issued by the Prime Minister's Office, the land was allocated for a small and medium industrial park. It added that the alleged financial irregularities in the leasing process will be probed by the panel. The committee will be led by the chairman of the prime minister's inspection commission, who has been appointed as the convener, while Intelligence Bureau (IB) Director Sirajuddin Amjad and Federal Investigation Agency (FIA) Director Syed Shahid Hussain will serve as its members. The committee has also been assigned a special task to examine the legal strategy of PQA in seeking the cancellation of the lease, including efforts to overturn the stay order issued against its revocation. It will investigate the factors considered by the PQA Board in its decision to reach an out-of-court settlement with the claimant. Furthermore, the inquiry panel will review all legal opinions that supported the out-of-court settlement. As per the terms of reference (ToRs), the committee will assess whether PQA reassessed the land's value before proceeding with the settlement and whether prevailing market prices were taken into account in the final decision. The committee will also determine why the out-of-court settlement offer was not immediately withdrawn when the claimant refused to accept it. In addition, it will identify governance issues that contributed to delays in the process. If necessary, the committee has been authorized to co-opt additional members to assist in the investigation. The ministry of maritime affairs will provide secretarial support. The inquiry committee is required to submit its report to the prime minister within two weeks. Last week, Senate Committee on Maritime Chairman Senator Faisal Vawda exposed a Rs60 billion corruption scandal, accusing a federal minister of "criminal negligence". Vawda detailed the land scam and held Maritime Affairs Minister Qaisar Sheikh accountable for the oversight. He claimed the deal was scrapped within 72 hours. "I asked for one thing, but they ignored me and rushed to cancel the deal in 72 hours," he said. During this time, he added, an official denial was published in obscure newspapers. Land worth millions per acre was allegedly sold for as little as Rs800,000 to Rs1 million.
