In a major move aimed at reducing Pakistan’s dependence on foreign shipping companies and saving billions in freight payments, the government is planning to bring the National Logistics Corporation (NLC) into the business structure of the Pakistan National Shipping Corporation (PNSC) as a strategic partner.
PNSC was once considered a symbol of Pakistan’s economic strength, but over time, mismanagement, political interference, and poor policies have created serious challenges for this national institution. The federal government is now preparing a new strategy for its revival, in which an important role has been assigned to the National Logistics Cell (NLC).
In 1947, Pakistan had only three merchant ships. Recognising the strategic importance of reducing maritime dependence, the country gradually developed its national fleet, which grew to 41 ships by the 1960s.
In 1979, the Pakistan National Shipping Corporation (PNSC) operated around 20 ships. By 1982, the corporation had reached its peak, with a fleet of approximately 45 vessels, including oil tankers, bulk carriers, and general cargo ships.
During this period, PNSC not only met the country’s import and export requirements but also contributed to the national exchequer through profits and dividends.
Today, the situation has completely reversed. From a peak of 45 ships, the company is now left with only 13 vessels, more than half of which are over 20 years old. Although the company has reported a net profit for the financial year 2024–25, experts believe these figures conceal deep structural problems.
Revenue has declined by around 19% year-on-year, while gross profit margins have fallen to 29.8%. In the first quarter of fiscal year 2026, profits dropped by 34% to Rs 3.71 billion. Most of the company’s income is now generated through asset sales or short-term charters rather than sustainable maritime operations.
The financial weakness of PNSC can be attributed to several factors, including poor governance, political interference, and vested interests.
PNSC’s vessels lag behind international standards in terms of deadweight tonnage and container-carrying capacity, which has reduced the corporation’s competitiveness. In the past, the absence of proper profit analysis in charter agreements led to financial losses and inefficient utilisation of assets.
A significant portion of domestic trade is transported through foreign shipping companies, while PNSC handles only about 11 per cent of cargo volume and 4 per cent of trade value. Nearly 90 per cent of the country’s trade is carried by foreign vessels. The limited size and capacity of PNSC’s fleet remain major obstacles to increasing its market share. In addition, high repair costs and prolonged idle periods for ships have contributed to declining profits.
In light of the current challenges faced by PNSC, the Government of Pakistan has decided to entrust the institution’s management control to NLC. The objective is to steer the organisation toward professional management, effective strategy, and improved performance.
Under this plan, 30% of the institution’s shares will be evaluated at market value during the restructuring process. NLC will raise capital and invest in strengthening and expanding the fleet.
It is worth mentioning here that the Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved the transfer of management control and a 30 per cent stake in the PNSC to the NLC to improve and integrate freight transportation through maritime and road networks. The meeting was chaired by Finance Minister Muhammad Aurangzeb.
Expected Benefits
- Strengthening the financial base and encouraging investment
- Improving efficiency through the integration of land and sea logistics systems
- Reducing ship idle time and enhancing operational efficiency
- Increasing profits and generating higher tax revenue for the national exchequer
The current condition of PNSC is not merely the story of a failing institution; it also reflects a system affected by poor governance and vested interests.
While other countries in the region expanded their global maritime presence through industrial growth, shipbuilding, and export-oriented policies, Pakistan’s maritime sector remained limited in scope.
However, with timely reforms, professional management, and modern maritime strategies, Pakistan can not only regain greater control over its maritime trade but also strengthen its economy and restore its maritime standing in the region.
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