Despite these (Pakistani) efforts, our seafarers still make up a tiny fraction of the global workforce, vastly outpaced by countries like the Philippines

Money MattersL Reform or regression? Part II
Syed Ali Haider Zaid 28 April, 2025 https://www.thenews.com.pk/magazine/money-matters/1305725-reform-or-regr...

We undertook significant efforts to solve visa issues for our seafarers and enhance their employment opportunities globally. For example, we requested and obtained a dedicated visa window for seafarers at the US consulate in Karachi, significantly streamlining the process for them. Despite these efforts, our seafarers still make up a tiny fraction of the global workforce, vastly outpaced by countries like the Philippines.

We undertook significant efforts to solve visa issues for our seafarers and enhance their employment opportunities globally. For example, we requested and obtained a dedicated visa window for seafarers at the US consulate in Karachi, significantly streamlining the process for them. Despite these efforts, our seafarers still make up a tiny fraction of the global workforce, vastly outpaced by countries like the Philippines.

The Philippines serves as a stellar example, where about 570,000 Filipino seafarers contribute significantly to the national economy with remittances reaching $6.7 billion in 2022 alone. The government there supports this sector through over 80 maritime schools, and in 2023, it enacted the 'Magna Carta of Seafarers' law to strengthen training standards, ensure fair wages and protect seafarers' rights. They have also successfully navigated international compliance challenges, maintaining EU recognition of their seafarer training programmes, which is crucial for employment on European ships.

To build on this groundwork in Pakistan, I recommend we intensify diplomatic efforts to ease visa restrictions in other key maritime nations, taking cues from the Philippine approach to international negotiations. And that we also expand maritime training facilities to increase the number of certified seafarers graduating annually, mirroring the Philippines’ extensive educational infrastructure. We should also promote partnerships between our maritime academies and leading international institutions to ensure our training standards meet the highest international benchmarks. And launch a targeted campaign to promote the high earning potential of seafaring careers among our youth, like the proactive marketing strategies seen in the Philippines.

Another critical but often overlooked issue is the persistent challenge of under-invoicing in fisheries exports. During FY2021–22, targeted interventions began to tackle this malpractice, and the results spoke for themselves. Pakistan’s fisheries exports hit a record high of $496.6 million, totalling over 214,000 metric tons of seafood. This marked a substantial milestone and demonstrated the untapped potential of the sector when governed with transparency and seriousness.

Unfortunately, with the lapse of focus and accountability, exports fell to $410.3 million the following year, a regression that underscores how fragile progress can be in the absence of continuous vigilance.

During our tenure, Pakistan also assumed a leadership role by chairing INFOFISH, a key Asia-Pacific platform for fisheries trade and development. This not only boosted our international visibility but positioned Pakistan as a serious player in regional maritime commerce.

The way forward is clear: strengthen regulatory oversight, address under-invoicing head-on, ensure sustainable practices, and reclaim our seat at global platforms. With the right attention, fisheries can become a cornerstone of Pakistan’s Blue Economy.

To rectify the current challenges and enhance the fisheries sector's contribution to our economy, I we implement stringent monitoring and reporting systems to ensure accurate invoicing of fisheries exports; develop value-added industries around our fisheries to retain more of the supply chain value domestically; establish stricter penalties for under-invoicing to deter the practice and ensure fair taxation; encourage sustainable fishing practices to protect our marine biodiversity, which is vital for the long-term health of our fisheries industry; and continue active participation and leadership in international fisheries organisations like INFOFISH to ensure Pakistan stays at the forefront of industry trends and data exchange, fostering better market access and trade policies.

We recognised the crucial role of the private sector in revitalising Pakistan's shipping industry and introduced tax incentives that significantly enhanced private sector investment in shipping, aiming to restore the vibrant landscape that existed when multiple private companies operated within our borders. Unfortunately, many of these firms have since relocated to tax-free zones abroad due to more favourable fiscal policies. Rather than handing over control of the PNSC to the NLC, I recommend the following: one, reinstating and enhancing tax incentives for private shipping companies to make Pakistan an attractive base for maritime operations. This could include tax holidays, duty-free import of vessels and other fiscal benefits. Two, streamlining regulatory processes to reduce bureaucratic hurdles for new and existing shipping enterprises.

Three, promoting joint ventures between local and international maritime businesses to transfer knowledge, enhance operational standards and build global networks. Four, launching targeted support programmes that provide financial and technical assistance to start-ups and small to medium enterprises (SMEs) in the maritime sector. Five, a viable model for the NLC would be to directly invest in vessels and place them under PNSC’s management, creating a win-win by adding fleet capacity without bloating bureaucracy. Another strategic approach would be for the NLC to establish its own commercial shipping line under a public-private partnership (PPP) model, focusing primarily on containerised cargo logistics, an area where Pakistan still lacks dedicated shipping solutions. This would allow the PNSC to retain its strategic focus on bulk and liquid cargo, thereby creating sectoral specialisation while improving national capacity in maritime transport.

These are not just operational suggestions, but structural realignments that will improve Pakistan’s logistics competitiveness in regional and global trade.

By adopting these measures, we will encourage a resurgence of private shipping ventures in Pakistan, thereby increasing employment, boosting our maritime capabilities, and enhancing our competitiveness on the international stage.

I urge the decision-makers of this country to halt this ill-conceived plan before irreversible damage is done. The current prime minister and his government have no idea what they are doing. The maritime sector was not broken; it was finally working. It was not asking for lifeboats, but just setting sail.

Sadly, in Pakistan, no one is listening. Please do not sink what was sailing.

Concluded