Ahmed Khan Malik

Pakistan’s shipping and port industry has warmly welcomed the government’s recent decision to reduce cargo clearance time at major ports, describing it as a reform that could lower trade costs, improve competitiveness, and enhance the country’s standing in regional and global trade.

The move is part of Islamabad’s broader strategy to modernise port operations and facilitate business, and it has been met with optimism by exporters, shipping companies, and logistics experts. The Ministry of Maritime Affairs, in coordination with Pakistan Customs, announced a set of measures aimed at simplifying documentation, digitising clearance processes, and bringing down average cargo dwell time.

At present, clearance procedures in Pakistan’s ports — particularly Karachi Port, Port Qasim, and Gwadar — often take much longer than international benchmarks. This has led to higher vessel turnaround costs and delivery delays for importers and exporters alike.

By cutting these bottlenecks, the government hopes to align Pakistan’s ports with global best practices. The target is to reduce average dwell time for containers at major ports to under 48 hours for imports and less than 24 hours for exports, a sharp improvement from the current three to six days that cargo typically remains stuck in clearance procedures.

Sector insiders have hailed the announcement as a ‘game-changer’. “The faster cargo movement would help exporters — particularly small and medium enterprises — avoid hefty demurrage charges, which have long eaten into profit margins,” Asif Akhtar, Chairman of Shipping Committee of Karachi Chamber of Commerce and Industry, told WealthPK.

He noted that predictability in shipping schedules will strengthen Pakistan’s reputation in international markets, especially in Europe and the Middle East. “For years, vessel delays due to slow clearance processes have added to our costs and discouraged some shipping lines from expanding operations here,” he said. “If these reforms are effectively implemented, they will not only reduce turnaround time but also make Pakistan a more reliable link in global supply chains.”

Mahmood Rajpar, director at a shipping company, pointed out that Pakistan’s logistics costs remain relatively high — around 13% of GDP compared with 8-9% in advanced economies — largely because of inefficiencies in transport and port operations. Reducing clearance time, he argued, will directly lower these costs and give Pakistani exports an edge at a time when the country is seeking to expand trade under its Strategic Trade Policy Framework.

Streamlined clearance processes, he said, will not only benefit traditional gateways such as Karachi and Port Qasim but also ensure Gwadar becomes a competitive transit and trans-shipment hub for regional trade. Mahmood cautioned that the challenge lies in execution.

“Announcing reforms is one thing, but achieving uniform implementation across all ports requires coordination among customs, terminal operators, and shipping lines,” he said. “Digitisation of processes must be matched by training and accountability to ensure delays don’t occur.” He noted there are already signs of progress.

“Initiatives such as the Web-Based One Customs (WeBOC) system and efforts to expand direct port delivery have reduced clearance times in pilot projects.” The latest government directive aims to scale up these improvements nationwide, while introducing new technologies for cargo tracking and electronic documentation.

Credit: INP-WealthPk