New shipping protocol to boost Indian - Pakistan economy
Indian cabinet has finally ratified the new shipping protocol agreement, says a press release of Port Qasim Authority. Pakistan has been waiting for India's formal nod for concluding the revised shipping protocol.The revised version of the shipping protocol between the two countries was pending since last eight months.Pakistan approved it early this year and was expecting India to sign it in March 2006 but it was delayed for some unexplained reasons.The 1975 shipping protocol, signed between the two countries some 30 years ago providing for bilateral shipping, was found to be inadequate to serve present-day requirements by the two countries. It was agreed between the two countries that there was a need for amending the protocol enabling shipping companies of both the countries to lift third country cargo from each other's ports.The revised protocol between India and Pakistan will allow lifting of cargo between the two countries by third countries' vessels as well as lifting of third country's cargo by Indian or Pakistani flag vessels from each other's ports.
This would help enhance cargo volume at Pakistani and Indian ports which result in competitive shipping rates, says a statement from Port Qasim Authority issued here Saturday.Minister for Ports and Shipping, Senator Babar Khan Ghauri has welcomed the approval of this new protocol by India and said it would attract private investors to shipping sector as now the shippers under Pakistani flag would have great operational scope with free movement of cargo to and from any country. This would boost the economy of the country.This, he said, would accelerate the private sector participation which would also generate employment opportunities and help reduce poverty.Director General, Ports and Shipping, Capt Anwar Shah hailing the endorsement of the protocol by Indian Cabinet said informal trade in the shipping sector was around $2 billion but now the benefits would go to both countries as there would be no double handling of cargo.Pakistan already has Mega-I, private sector vessel, flying Pakistan flag. Now Mega-II and Mega-III would join the shipping fleet under Pakistani flag, which are currently operating under Sri Lanka flag. He said Habibullah Group had done the feasibility for a private shipping line. It has already secured the licence.Nissan Shipping had also stated, according to the press release, that it would get a licence after the signing of the shipping protocol to operate under Pakistani flag.Federal Minister for Ports and Shipping Babar Khan Ghauri had earlier stated that Karachi-Mumbai ferry service would start soon after the revised shipping protocol is signed.
This would help enhance cargo volume at Pakistani and Indian ports which result in competitive shipping rates, says a statement from Port Qasim Authority issued here Saturday.Minister for Ports and Shipping, Senator Babar Khan Ghauri has welcomed the approval of this new protocol by India and said it would attract private investors to shipping sector as now the shippers under Pakistani flag would have great operational scope with free movement of cargo to and from any country. This would boost the economy of the country.This, he said, would accelerate the private sector participation which would also generate employment opportunities and help reduce poverty.Director General, Ports and Shipping, Capt Anwar Shah hailing the endorsement of the protocol by Indian Cabinet said informal trade in the shipping sector was around $2 billion but now the benefits would go to both countries as there would be no double handling of cargo.Pakistan already has Mega-I, private sector vessel, flying Pakistan flag. Now Mega-II and Mega-III would join the shipping fleet under Pakistani flag, which are currently operating under Sri Lanka flag. He said Habibullah Group had done the feasibility for a private shipping line. It has already secured the licence.Nissan Shipping had also stated, according to the press release, that it would get a licence after the signing of the shipping protocol to operate under Pakistani flag.Federal Minister for Ports and Shipping Babar Khan Ghauri had earlier stated that Karachi-Mumbai ferry service would start soon after the revised shipping protocol is signed.
Licence in this connection has also been granted to a Pakistani company.Such liberalisation will boost not only the trade relations between the two countries, but also the shipping services with the likely participation of private carriers.
