by Manal Barakat, SeaNewsEditor

The Pakistani government has announced a 50% reduction in various tariffs at Port Qasim, the country's second-busiest port after Karachi.

This move is part of a broader reform agenda aimed at promoting economic development across coastal regions after the recent conflict with India.

Nearly half of Pakistan's export and imports trade is handled through Port Qasim's container terminal operated by DP World.

The reduction in port charges is expected to benefit exporters significantly. More specifically, exporters of the country’s key productions such as apparel, rice, leather goods, and agricultural products.

These products are primarily destined for the Middle East, the US, China, and Europe. Last year, the total export value stood at approximately $32.44 billion, marking a 5% increase year-on-year.

The latest geopolitical tensions and trade restrictions between India and Pakistan impacted the supply chain in the country.

Due to these trade restrictions, major shipping lines have had to revise their routes, launching new shuttle services that route Pakistani cargo through hub ports such as Colombo in Sri Lanka and Salalah in Oman, rather than relying on the traditional access via India.

Consequently, most major carriers have introduced surcharges on Pakistan exports to major global markets.

According to media reports, the new government announcement of concessional port charges for exports aims to incentivise carriers to reduce their freight charges, with no immediate signs of a relaxation in the port restrictions from either country.