Pakistani ports emerge as safe trade hub

2026-03-28 - 04:00

ISLAMABAD: With the implementation of facilitation measures, long queues of container ships have begun forming at Karachi ports as global shipping lines divert vessels to Pakistan, seeking safer routes amid increased risks in the Strait of Hormuz due to the ongoing Middle East conflict. The government has also established specialised sub-committees to recommend structural reforms in the maritime and logistics sectors. It has already reduced port charges to boost competitiveness, sped up the clearance of long-pending cargo, and implemented targeted policy measures to support transhipment activity. Industry officials said the diversion has triggered an unprecedented surge in transhipment activity at Karachi ports, positioning Pakistan as an emerging alternative hub outside vulnerable maritime chokepoints. Official data showed transhipment volumes at Karachi port reached 8,860 containers in just the last 24 days, while comparing with the annual volume of 8,300 containers in 2025. This clearly shows a sharp acceleration in cargo rerouting. Industry sources said the potential of Gwadar and Karachi as transhipment ports for GCC countries and beyond, particularly during periods of crisis, is now being tested. Both ports, located outside narrow and vulnerable maritime chokepoints, offer significant opportunities for regional trade in petroleum products and LPG. Shipping companies are increasingly opting for Karachi to avoid the security and insurance risks associated with routes passing through the Gulf, where rising tensions have heightened concerns over vessel safety and potential disruptions to supply chains. Patron-in-Chief, Pakistan Textile Exporters Association (PTEA), Khurram Mukhtar, said in the backdrop of evolving global trade dynamics, Pakistan is emerging as a safe, stable, and increasingly attractive destination for international trade, investment, and transhipment activity. The PTEA has proposed the establishment of a Centralised Monitoring & Response Unit to monitor import and export cargo flows through the Pakistan Single Window. This unit should function as a real-time control tower to identify bottlenecks across ports, terminals, shipping lines, and transhipment hubs. It should proactively coordinate with all stakeholders for swift resolution, ensuring uninterrupted cargo movement and minimizing systemic inefficiencies. It was proposed that a comprehensive service level benchmark should be defined across the maritime trade chain, covering ports, terminal operators, shipping lines, and allied service providers. These standards must be aligned with international best practices to ensure predictability, reduce dwell time, and enhance Pakistan’s competitiveness in global trade. The association demands that advance manifest filing be made mandatory for all shipping lines to enhance planning, transparency, and operational efficiency. Published in Dawn, March 28th, 2026