Web Desk: Once a symbol of national self-reliance and strategic strength, Pakistan National Shipping Corporation PNSC has steadily slid into decline, prompting the government to pursue a management overhaul aimed at reversing decades of underperformance and restoring control over the country’s maritime trade.
Pakistan began building its national shipping fleet soon after independence, expanding from just three merchant vessels in 1947 to 41 ships by the 1960s as policymakers sought to reduce reliance on foreign carriers. By 1982, PNSC reached its peak with a fleet of 45 vessels, including oil tankers, bulk carriers and general cargo ships, enabling the country to transport critical imports and exports while generating profits and dividends for the national exchequer.
However, that trajectory has sharply reversed. Today, PNSC operates only 13 vessels, with about half of the fleet more than 20 years old. Although the corporation posted a net profit in the 2024–25 fiscal year, the figures conceal deeper structural weaknesses and periodic downfall.
Revenue has fallen about 19% year-on-year, while gross profit margins have narrowed to 29.8%. Moreover, quarterly results for the first quarter of FY26 showed profits dropping 34% year-on-year to Rs 3.71 billion for the standalone company. Much of the remaining profitability, stems from asset sales and chartering arrangements rather than sustainable shipping operations.
As a result, PNSC’s ability to compete globally has continued to erode.
Beyond allegations of misgovernance, political interference and vested interests, structural issues have weighed heavily on the corporation. PNSC’s vessels lag global standards in deadweight tonnage, particularly in dry bulk and container segments, limiting revenue potential.
Meanwhile, domestic shipping carries only a small share of Pakistan’s trade. PNSC handles about 11% of cargo volume and just 4% by value, while foreign carriers dominate roughly 90% of cargo transport. High maintenance costs, idle days and a limited fleet size have further constrained competitiveness.
The decline has broader economic consequences. Pakistan spends an estimated $4 billion to $8 billion annually on foreign shipping services, increasing pressure on foreign exchange reserves. Reliance on overseas carriers also heightens strategic vulnerability for essential imports, while reduced fleet activity limits jobs for seafarers, engineers and logistics professionals.
At the same time, the wider maritime ecosystem including ship repair, training, insurance and port-linked services has remained underdeveloped, while higher freight costs undermine the competitiveness of Pakistani exports.
Regional and international comparisons highlight the scale of the challenge. India’s Shipping Corporation operates between 57 and 64 vessels, while Sri Lanka maintains around 95 ships under its flag. South Korea, which had fewer ships than Pakistan in the 1960s, expanded to more than 2,100 vessels today. Indonesia now boasts over 11,400 registered ships, the world’s largest fleet.
Against this backdrop, the government has tasked the National Logistics Cell with taking over PNSC’s management, citing NLC’s track record in professional management and strategic execution. Under the proposed restructuring, 30% of PNSC’s shares would be evaluated at market rates, with NLC expected to generate capital to reinvest in fleet renewal and operational upgrades.
The goal is to introduce professional oversight, improve efficiency and align maritime operations with Pakistan’s broader logistics infrastructure.
Supporters of the plan argue that integrating NLC’s land transport expertise with maritime operations could reduce turnaround times, cut idle days and strengthen profitability. Broader ownership and improved governance, they say, could attract investment, accelerate fleet modernization and ultimately increase dividends and tax contributions to the national exchequer.
While challenges remain, policymakers insist PNSC’s decline is not irreversible. With decisive reforms, modern vessels and professional management, they argue Pakistan can regain greater control over its maritime trade, reduce dependence on foreign carriers and restore a sector once seen as a pillar of national economic security.
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