ISLAMABAD (Kashmir English): The Economic Coordination Committee (ECC) of the Cabinet on Tuesday granted in-principle approval for the transfer of management control and a 30 per cent shareholding in Pakistan National Shipping Corporation (PNSC) to the National Logistics Corporation (NLC).
An official statement from the Ministry of Finance stated that the Committee has directed the concerned authorities to expedite the process in view of tapping the emerging maritime and transshipment opportunities.
PNSC is Pakistan’s national shipping carrier engaged in the transportation of dry bulk and liquid cargoes across the globe.
Reason behind the restructuring of PNSC
PNSC has only 13 ships, and it carries only 11% of the cargo, due to which Pakistan has to pay freight charges of about US $6 billion to foreign shipping companies.
At present, approximately 90% of all export-import (EXIM) trade is handled by foreign-flagged vessels.
In the historical context, the shipping corporation started with three merchant vessels in 1947, and with its gradual development, the fleet rose to 41 ships by the 1960s.
In 1982, the corporation reached a peak of 45 vessels, including oil tankers, bulk carriers and general cargo ships.
However, today the trajectory has reversed sharply. From 45 ships, it now operates only 13 ships, most of which are aging. Many of its ships are reaching the end of their operational lifespan, making it increasingly difficult to operate profitably beyond 2030.
While the corporation technically posts a net profit in FY 2024 -25, these figures mask deeper structural weaknesses.
Revenue has declined by about 19% year-on-year, gross profit margins have shrunk to 29.8%, and quarterly results for Q1 FY26 showed profits falling by 34% year-on-year to Rs 3.71 billion for the standalone company.
Much of this profitability comes from asset sales or charters rather than sustainable shipping operations.
Considering PNSC’s current challenges, the federal government has tasked the National Logistics Cell (NLC) to take over PNSC’s management.
Under this arrangement, NLC will guide the company toward professional management and operational efficiency.
As part of the restructuring, 30% of its shares would be evaluated at market rates, and NLC would generate the required capital to reinvest and strengthen the fleet.
Future plan
According to official sources, the restructuring is aimed at expanding the national shipping fleet and reducing foreign freight costs.
Under the prime minister’s approval, the vessel fleet will be increased to 54 vessels after 5 years, with projected annual foreign exchange savings of $5bn to $6bn in freight costs by handling more sea-route cargo.
By achieving these goals, the ocean freight market share of PNSC will increase from 5% to 56%, which would be $162 million to $178 million in the next 5 years.
The consolidation is also aimed at enhancing funding through broader ownership to accelerate fleet renewal and improve asset deployment.
It will strengthen its financial footing, attract investment, and align logistics infrastructure with maritime operations.
Improved operational performance will translate into higher dividends and corporate tax contributions to the national exchequer.
