Pakistan National Shipping Corporation (PSNC) has planned to acquire another used vessel called as Aframax at an estimated cost of $38 million, to meet the domestic demand for shipment of crude oil and petroleum products as part of scaling up its strategic operations and businesses.
According to an official source, the management of the national flag carrier has expressed its interest through an official tender in recent days for the acquisition of a used oil tanker or ship in the current financial year 2020-21.
This will be the third vessel being purchased by the national shipping line in recent years. Previously, it acquired two vessels last year M.T. Bolan and M.T. Khairpur to enhance its logistic capacity to ship crude oil and petroleum products for different refineries and oil marketing companies from various countries.
Keeping in view the dynamics of the global shipping market, PNSC remains on the lookout for the expansion of its fleet. The management of the national flag carrier planned to further expand its fleet of managed vessels during the financial year 2020-21 in order to cash in on the prevailing favorable trend of the market and the benefit of financing facilities.
In 2020, the State Bank of Pakistan included the shipping sector within the ambit of the Long Term Finance Facility (LTFF). Under this scheme, financing will be available to PNSC at a cheaper rate of up to 6%. The financing under this scheme may be used for a tenure of up to ten years.
The recently approved shipping policy notified by the federal government would strengthen the overall shipping sector in Pakistan.
As per the new policy, the shipping sector of Pakistan in general and PNSC in particular will greatly gain through various tax incentives available for inducting new ships. This recently approved shipping policy extended exemption from sales tax and customs duty up to FY 2030. This coupled with the availability of LTFF creates a huge opportunity for PNSC to expand its business.
In the outgoing financial year, PNSC has declared a profit of Rs. 2.414 billion, an increase of 10% as compared to the last year’s profit of Rs. 2.194 billion.