The government of Pakistan has decided to halt its plan to privatize the Pakistan National Shipping Corporation (PNSC). This decision reflects the strategic importance of the corporation, which plays a crucial role in ensuring the country’s supply chain and supporting national security during critical times.
Initially, there was a proposal to privatize PNSC by offering a significant number of shares through the Pakistan Stock Exchange (PSX). The aim was to attract additional funding and expand the fleet of ships operated by the corporation. However, after thorough consideration, it was decided that PNSC would remain under state ownership as a strategic state-owned enterprise (SOE).
PNSC was established in 1979 under the Pakistan National Shipping Corporation Ordinance and is a publicly listed company. While the government holds 87.56% of the shares, the remaining 12.44% is owned by the public and the PNSC Employees Empowerment Trust. Despite its aging fleet, the corporation has consistently been a profitable entity, providing essential services to other state organs and ensuring smooth supply chain operations.
A key turning point came during a PNSC board meeting on May 17, 2024. The board unanimously declared that the corporation should retain its status as a strategic SOE. It emphasized that PNSC’s role extends beyond commerce, serving as a vital defense asset during wars, conflicts, and economic sanctions. The corporation also offers protection against the exorbitant “war risk surcharge” imposed by private shipping companies during times of crisis, safeguarding the national economy.
The Ministry of Maritime Affairs had initially proposed privatising PNSC to raise funds for fleet expansion. However, after consulting other key ministries, it became evident that selling PNSC shares would compromise national security and burden the economy during emergencies. The ministries highlighted the corporation’s essential role in maintaining sea lines of communication and transporting sensitive cargo in times of need.
In September 2024, the Cabinet Committee on State-Owned Enterprises (CCOSOEs) reviewed PNSC’s status and agreed to its categorisation as a strategic SOE. This decision was further supported by the task force on Pakistan’s maritime sector, which recommended maintaining state ownership of PNSC while exploring alternative funding options to modernize its fleet.
The final review of this matter occurred when the cabinet considered PNSC’s status alongside other similar organisations. The decision to retain PNSC as a strategic SOE was reinforced, recognising its critical importance in safeguarding the nation’s maritime and economic interests.
With this resolution, PNSC continues to stand as a pillar of Pakistan’s maritime sector, ready to support the country during challenges while contributing to economic growth and stability.
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