Fiscal package launched to boost Karachi Port’s regional hub status

March 19, 2026 (MLN): Karachi Port is set to become a more attractive hub for foreign-flagged transshipment vessels, following the unveiling of a comprehensive package of fiscal incentives. 

The new framework offers substantial concessions on port dues, berthing, and related charges, including a 60% relief for vessels carrying dry bulk export cargo under the Karachi Port Trust tariff, according to a press release issued.

The policy lowers the minimum transshipment cargo requirement from 10% to 7.5%, raises the base discount from 5% to 20%, and introduces additional incentives rising from 2% to 5% for every incremental 5% increase in transshipment volumes. 

Vessels carrying transshipment cargo equal to 50% of their gross registered tonnage will qualify for a flat 60% discount at $1.18 per GRT, while large container ships with at least 25% transshipment cargo can receive up to 50% off wet charges. 

Ships using environmentally friendly fuels will receive an extra 5% reduction in berthing charges.

The initiative was declared by Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry while chairing a high-level meeting, describing it as part of a broader strategy to boost shipping activity and reward sustainable practices. 

“The new incentive structure provides significant relief in port dues and berthing charges based on performance, effective from March 18, 2026,” he said. 

It was also highlighted that “more carriers are expected to be encouraged to utilise Karachi Port,” with incentives linked to monthly ship calls being significantly enhanced. 

The vision behind the policy was emphasised, noting that “both operational scale and environmental responsibility are being incentivised, and the modernisation of Pakistan’s blue economy is being driven by KPT.”

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