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KARACHI: Foreign shipping lines handling 90 percent of Pakistan’s seaborne trade have warned of a “total disruption” of the country’s imports and exports, citing “ill-planned” tax requirements that their agents say Pakistan’s Federal Board of Revenue (FBR) is trying to enforce.

In a letter written to Prime Minister Shehbaz Sharif dated Sept. 19, the Pakistan Ship’s Agents Association (PSAA) said FBR officials were compelling non-resident ship owners to register themselves on the national tax collector’s portal, obtain national tax number (NTN), file tax returns and take exposure to the country’s “unpredictable” tax environment.

Calling the move as “ill-planned”, the PSAA warned of an “impending crisis” that is likely to affect Pakistan’s entire seaborne trade.

“By arbitrary one-sided actions, FBR is creating extreme hardships for foreign flag vessels upon which Pakistan’s trade is entirely dependent,” PSAA chairman Mohammed A. Rajpar said in the letter addressed to the prime minister.

“You are requested to direct the concerned authorities to restore the previous system… rather than resorting to strong arm tactics which tantamount to threatening total disruption to Pakistan’s imports and exports.”

PSAA represents foreign shipping lines such as Maersk, China Ocean Shipping Company (COSCO), Mediterranean Shipping Company (MSC), CMA CGM and around 50 others.

The South Asian country depends on these shipping lines for the transportation of 90 percent of its seaborne trade, which amounted to $90.4 billion in the last fiscal year that ended in June, according to the Pakistan Bureau of Statistics (PBS). The remaining 10 percent cargoes, mostly comprising oil, are shipped by the state-run Pakistan National Shipping Corporation (PNSC).

Rajpar said all non-resident foreign shipping firms had their authorized representatives present in Pakistan and had been fulfilling and complying with all legal requirements as far as income tax was concerned.

“This move by FBR runs totally counter to the current government’s ease of doing business policies, particularly when dealing with foreign entities,” the PSAA chairman said.

REVENUE AUTHORITY REJECTS CLAIMS

The warning comes as Sharif’s government has joined hands with the International Monetary Fund (IMF) and bilateral partners like ����ֱ��, China and the United Arab Emirates (UAE) to revive Pakistan’s debt-ridden economy by increasing revenues.

The IMF’s $7 billion loan program, which Islamabad secured last year, requires the government to broaden the country’s narrow tax base and plug revenue leakages.

“The claim that FBR has introduced an unlawful requirement is misplaced,” Wasiq Mushtaq, a deputy commissioner at the FBR’s inland revenue service, told Arab News, citing relevant income tax law which “expressly requires every ship’s master to file voyage-wise freight returns in Pakistan.”

“The system is lawful, internationally consistent, and facilitates trade as process of ship’s assessment would be transparent and digitally handled thus more expedient rather than hindering it.”

He said registering non-resident ship owners was a statutory requirement and was being practiced globally, citing examples of India, Malaysia and Australia.

The non-enforcement of relevant law had resulted in the outflow of “illegal remittances” from the country, according to the FBR official. He did not specify a number for the said remittances.

It has “prima-facie resulted in huge revenue losses,” Mushtaq added.

POSSIBLE CONSEQUENCES

Syed Tahir Hussain, the PSAA secretary general, insisted that the tax requirements were causing difficulties for all foreign shipping lines, which might stop transporting shipments if the authorities did not address the issue.

“The shipping lines would either stop calling at Pakistani ports, while those already anchored at local ports would not be able to sail out for the want of clearance from income tax authorities,” Hussain warned.

ISLAMABAD: Leaders from Pakistan, Arab Gulf nations and other Muslim states met on Monday in New York to ponder a unified approach on key regional and global issues at the 80th session of the United Nations General Assembly (UNGA), the Pakistani foreign office said.

Prime Minister Shehbaz Sharif led the Pakistan delegation to New York as the General Assembly High-level Week 2025 kicked off on Monday, with global leaders in attendance and Tuesday, Sept. 23 set to be the first day of the high-level General Debate at the 80th session.

On Monday, Deputy PM and Foreign Minister, Ishaq Dar, represented Pakistan in consultations hosted by Qatari PM Sheikh Mohammed bin Abdulrahman Al-Thani in New York, which also included deputy prime ministers of Jordan and the United Arab Emirates (UAE), and foreign ministers of ����ֱ��, Egypt, Indonesia and Turkiye.

Dar underscored that the people of Pakistan had great affinity for their Muslim brethren in the Middle East and would support all constructive endeavours aimed at fostering peace, stability and prosperity in the region and beyond.

“The ministers exchanged views and coordinated positions for unified approach on some of the key issues at the UN General Assembly session,” the Pakistani foreign office said.

The UNGA session comes in the backdrop of Israel’s nearly two-year war on Gaza and the recent strikes against Hamas leaders in the Qatari capital of Doha, which raised fears of a wider military conflict in an already volatile region and drew condemnations from the Muslim world.

The 80th session of the United Nations General Assembly is being held under the theme “Better together: 80 years and more for peace, development and human rights.”

From Sept. 23 till Sept. 29, the session will feature speeches from presidents, prime ministers and monarchs who will deliver national statements, set out visions for peace, development, human rights and collective action at the iconic green marble podium.

Pakistan PM Sharif as well as various world leaders will also take part in the “High-level International Conference for the Peaceful Settlement of the Question of Palestine and the Implementation of the Two-State Solution,” which will be co-chaired by ����ֱ�� and France.

In a statement on Sunday, Pakistan’s foreign ministry said Sharif will urge the international community to resolve the crises in Palestine and disputed Kashmir territory and grant the people there the right to self-determination. The Pakistani prime minister will call for decisive action to end the suffering of the Palestinians.

“He will also highlight Pakistan’s perspective on the regional security situation as well as other issues of international concern, including climate change, terrorism, Islamophobia, and sustainable development,” the statement said.

“The prime minister will also participate in a meeting of select Islamic leaders with US President [Donald] Trump to exchange views on issues pertaining to regional and international peace and security.”

Sharif is expected to hold bilateral meetings with several world leaders and senior UN officials to discuss matters of mutual interest, according to the Pakistan foreign ministry. He will also underline Pakistan’s resolve to work with all UN member states to uphold the UN Charter, prevent conflict, foster peace and promote global prosperity in Pakistan’s current role as a member of the Security Council.