Pakistan, China sign maritime shipping pact

China and Pakistan on Thursday signed a maritime agreement to transform Islamabad's shipping sector and upgrade its role in the global maritime industry.

The agreement was signed between Pakistan National Shipping Corporation (PNSC) and China's Shandong Xinxu Group, Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry said.

The Pakistani shipping sector "is set for a major transformation following the agreement," he added.

Addressing the signing ceremony in the capital Islamabad, Chaudhry said the development symbolizes a growing partnership between Pakistan and China in the maritime domain, paving the way for future cooperation, investment, and development in Pakistan's shipping industry.

He emphasized that the collaboration will boost regional trade, enhance connectivity, and strengthen Pakistan's role in the global maritime industry through mutual cooperation and shared economic goals.

The understanding primarily focuses on collaborative efforts in several key areas, including the sale and purchase of merchant cargo vessels such as liquid bulk tankers, dry bulk carriers, and containerized ships under joint or individual ownership, as well as through profit and loss sharing arrangements.

Another major component of the pact involves PNSC offering commercial, technical, and administrative management services for vessels as mutually agreed, covering areas such as chartering, marketing, revenue optimization, maintenance, dry-docking, crewing, and regulatory compliance.

The PNSC, headquartered in Karachi, is Pakistan's premier national flag carrier, operating under the Ministry of Maritime Affairs.

Shangdong Xinxu Group Corporation, based in Zibo city of Shandong province, is a leading Chinese enterprise engaged in international trade and shipping.

China is Pakistan's largest trading partner, with their bilateral trade volume reaching $23.1 billion in 2024, representing an 11.1% increase compared to the previous year.