The Standing Committee on Maritime Affairs urges tax exemptions on vessel procurement and seafarer salaries to strengthen Pakistan’s shipping industry.
Standing Committee Meeting on Maritime Affairs
A meeting of the Standing Committee on Maritime Affairs was held under the chairmanship of Abdul Qadir Patel, MNA. The committee discussed various agenda items related to the attached departments of the ministry. The chairman emphasized that the committee represents the will of the people and is dedicated to assisting the government in making maritime-related departments more efficient and robust.
Follow-Up on Previous Recommendations
During the meeting, a follow-up was conducted on the recommendations made in the previous session. The committee reiterated the need for a permanent chairman for the Pakistan National Shipping Corporation (PNSC). A letter of recommendation will be sent to the Prime Minister of Pakistan to expedite this appointment.
Sales Tax Exemption for Vessel Procurement
The Standing Committee highlighted the global practice where vessels and ships procured or purchased are exempted from various taxes, particularly sales tax. Given the significance of PNSC as the national flag carrier of Pakistan and a reputed player in global maritime transportation, the committee unanimously recommended that vessels and ships procured or purchased in the future should be exempted from sales tax.
Furthermore, the committee suggested that, in alignment with this exemption, salaries of seafarers sailing under the national flag should also be exempt from income tax. The committee emphasized that such measures would provide a much-needed boost to Pakistan’s shipping sector and strengthen PNSC’s operational capabilities.
Amendments to Import and Trade Policies
To further empower the national fleet, the committee recommended amendments to the import and trade policy. Specifically, it suggested that the national fleet should be given the first right of refusal to ensure its competitiveness in the shipping industry.
Corporate Social Responsibility (CSR) Contributions
The committee urged PNSC to play a meaningful role in corporate social responsibility (CSR) initiatives. It recommended that PNSC engage with the youth and qualified individuals from local communities to contribute towards social development programs.
Disposal of Retired Vessels
The committee reviewed concerns regarding the revamping and sale of vessels. It recommended that vessels should be disposed of as soon as they reach their age of retirement to maintain operational efficiency.
Employment Policies and Job Security
The committee stressed the need for a uniform policy regarding employment on a daily wage or contract basis. It suggested that skilled workers should be retained with attractive salary packages to ensure long-term stability. The committee also highlighted that reforms should not be used as a pretext for arbitrary dismissals, advocating for fair and transparent employment policies.
Compliance with International Requirements
Minister for Maritime Affairs, Qaiser Ahmed Sheikh, informed the committee that in compliance with international regulations, all organizations under the Ministry of Maritime Affairs (MoMA), including Karachi Port Trust (KPT) and Port Qasim Authority (PQA), are being made compliant with State-Owned Enterprises (SOE) standards.
Attendees of the Meeting
In addition to the chairman and Minister for Maritime Affairs Qaiser Ahmed Sheikh, the meeting was attended by MNAs Arshad Sahi, Malik Shakir Bashir Awan, Khurram Munawar Manj, Hassan Sabir, Syed Rafiullah, Mohammad Usman Badani, Pullain Baloch, as well as the Secretary of MoMA, Chairman of PQA, and senior officers from MoMA and its attached departments.
