960422

$5 bn investment in

shipping likely, but

on duty exemption

RECORDER REPORT

KARACHI: Foreign investment to the tune of $5 billion is expected in the national ports and shipping sector provided the government allows duty free purchase of ships for the next three years and permit the shipowning companies to operate foreign currency accounts.

This was stated by the President of National Shipowners Association, Masood T. Baghpatee, who held a series of meetings with foreign investors in Singapore, South Korea, London and France.

He said that he explained the investment situation in Pakistan and the incentives given by the government to the port and shipping sector. There was a very positive and encouraging response from the foreign investors but they demanded that investments to be made in purchase of ships and registry in Pakistan should be exempted from all import levies at least upto 31-12-2000. The date of registry should be treated as the date for Customs clearance purposes.

Baghpatee pointed out that the required incentives were available to the private sector shipping companies for a brief period from August 1995 to December 1995 and during this short period three vessels were registered in Pakistan by the private sector.

He said that in order to bring more ships under Pakistani flag it is essential to allow the required facilities to local shipowners and foreign investors otherwise our competitors like India, Bangladesh and Sri Lanka would grap the missed opportunities and Pakistan would continue to suffer losses in the form of heavy freight bill to the tune of dollar 1.40 billion every year.

The NSA chief maintained that the government is not getting any revenue from the import of ships which is subjected to 20 percent duty and sales tax because nobody imported and registered a ship in Pakistan with the present levies.