Summary The ministry has directed the Ministry of Maritime Affairs to resubmit a revised draft after incorporating key recommendations, particularly in light of commitments made under the IMF programme
ISLAMABAD (Mudassar Ali Rana) – The Ministry of Finance has raised concerns about the proposed Pakistan Maritime and Port Authority Act 2025, refusing to endorse the draft as it stands and urging a thorough revision before final approval.
According to well-placed sources, the Finance Ministry has directed the Ministry of Maritime Affairs to resubmit a revised draft after incorporating key recommendations, particularly in light of commitments made under the International Monetary Fund (IMF) programme.
The ministry noted that the proposed legislation contains several fundamental flaws that must be addressed to ensure compliance with international standards and financial obligations.
A major concern highlighted is the authority’s proposed dual role as both regulator and operator. The ministry warned that such an arrangement could create a conflict of interest, emphasizing that international best practices require regulatory and operational functions to be handled by separate entities. It has therefore recommended establishing a separate organization to manage port operations in line with the State-Owned Enterprises Act 2023.
The ministry also underscored the need for cabinet approval and fulfillment of all legal requirements before the bill is finalized. It cautioned that certain provisions in the draft could undermine the autonomy of key institutions — including the Pakistan National Shipping Corporation, Port Qasim Authority, Karachi Port Trust, and Gwadar Port Authority — potentially conflicting with reform targets agreed with the IMF.
To strengthen corporate governance, the Finance Ministry has recommended separating the roles of Chairman and Chief Executive Officer. It also identified technical gaps in the draft, including shortcomings in board composition and a lack of clarity regarding key positions.
Under the proposed structure, the authority would be governed by a Board of Governors comprising a chairman, CEO, and experts from sectors such as ports, shipping, shipbuilding, fisheries, and seabed resources. These members would be appointed by the Prime Minister, while certain government officials may serve as non-voting, co-opted members in an advisory capacity.
The ministry further emphasized the need for financial discipline and transparency. It recommended that surplus funds be deposited into the federal treasury, all payments be subject to pre-audit, and internal audit mechanisms be strengthened. It also called for clearly defined timelines for budget preparation and approval, along with regular financial reporting.
Additionally, the ministry raised objections to certain policy-related provisions, suggesting that approvals on coastal and maritime policies should rest with the federal government rather than solely with the authority’s board. It also called for constitutional clarity regarding powers related to the establishment and designation of ports.
In light of these concerns, delays in the approval of the act are expected. The government will now need to undertake further consultations to align the proposed law with international standards and IMF requirements. Experts have warned that proceeding with the current draft without incorporating these recommendations could invite objections from the IMF and risk non-compliance with agreed reform targets.
