KARACHI: In order to recognise the recent tax reforms for shipping sector by the present government, Pakistan National Shipping Corporation (PNSC) recently held a seminar on “Prospects of Shipping Sector in Pakistan” in Karachi.
The purpose of the seminar was to highlight the recent exemptions by the present government on Customs duty, general sales tax and withholding tax on imports of ships and other floating crafts. The house was full with prominent representations from Pakistan’s shipping industry and stakeholders both from public and private sectors.
The seminar was honoured by Ports and Shipping Minister Senator Mir Hasil Khan Bizenjo and COMPAK Commander Vice Admiral Arifullah Hussaini.
The seminar was aimed to promote shipping sector of Pakistan, promulgate policies and incentives to ensure growth and prosperity of Pakistan’s maritime sector and encourage and attract local and foreign investors.
Addressing the audience, PNSC Chairman Arif Elahi highlighted the global perspective on the role of merchant shipping. He briefed about the merchant shipping of Pakistan, specifically the role of PNSC in uplifting trade, economic activities and supporting oil supply chain of Pakistan. He appreciated the efforts of MoP&S in abolishment of Customs duty, general sales tax and withholding tax on imports of ships and all floating crafts including tugs, dredgers, survey vessels and other specialised crafts purchased or bareboat chartered by Pakistani entity and vessels flying Pakistan flag.
The PNSC chairman, while emphasising the importance of maritime industry, also highlighted PNSC’s performance that has been outstanding in the last decade. He said that the current PNSC’s fleet comprises modern vessels with deadweight carrying capacity of 681,806 metric tonnes – highest ever since its inception, adding that the corporation’s profitability continues to increase with a net profit of over Rs 2 billion with foreign exchange savings of over $1.5 billion. PNSC has also paid dividends and taxes to the government, which amounts to billion of rupees and contributing its part in economic growth of Pakistan, he said.
“The current national seaborne trade of Pakistan stands at 73.0 million tonnes and looking at the potential of this sector, we expect this figure would reach to 95 million tonnes by year 2020,” the chairman added.
Elahi encouraged the participants to invest in maritime sector of Pakistan in areas i.e. oil tankers, bulk carriers, container vessels, LNG carriers, oil storage and ancillary shipping services to strengthen national fleet and improve shipping services in Pakistan.
“I invite all the stakeholders to fully utilise these benefits of exemptions of duties and taxes and welcome to enter into joint venture with PNSC in acquiring vessels for your own usage. This shall not only save the country’s huge valuable foreign exchange but will also improve our cost and reduce dependency on foreign carriers, which will ultimately benefit investors and shareholders by means of higher profitability,” the PNSC chairman said.
Ports and Shipping Secretary Khalid Pervez also expressed his gratitude to the ports and shipping minister for his untiring efforts in pursuing the government to abolish the Custom duty, GST and WHT on import of ships and all floating crafts. “This remarkable decision will help private sector invest in the maritime sector and will also provide golden opportunity for them to join PNSC through public private partnership,” he added.
The federal secretary appreciated the efforts made by the PNSC chairman and his team in the commercial and financial performances during the last financial year introducing reforms in the organisation and thanked them for organising such an informative seminar.
In the end, Ports and Shipping Minister Senator Mir Hasil Khan Bizenjo thanked all the participants and appreciated the reforms of the present government by exempting duties and taxes on procurement of ships, which has finally set the stage of development in maritime sector of Pakistan.
“I am pleased to inform you that our ministry is presently working in support with other ministries to improve port infrastructure, streamline supply chain management and developing of existing national fleet,” the minister added.
Bizenjo also highlighted the volatility that prevails in international shipping and also shared reasons that resulted in recent downturns, which posed significant risk to shipping market.
Source: http://dailytimes.com.pk
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