PIDE urges Pakistan to seize 'maritime moment' for ports’ transformation

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 21st Apr, 2026) The Pakistan Institute of Development Economics (PIDE) on Tuesday called for seizing the emerging “maritime moment,” saying that evolving tensions in the Gulf have created a rare and time-sensitive opportunity for the strategic transformation and modernization of the country’s ports and maritime infrastructure.

In a new policy brief titled “Capitalizing on Conflict: Reimagining the Ports of Pakistan Amid Gulf War,” authored by PIDE Assistant Professor Dr Nadia Hassan, the institute highlighted that disruptions in Gulf shipping routes have temporarily redirected international cargo flows, offering Pakistan a chance to reposition its ports as competitive regional trade hubs.

With nearly one-fifth of global trade passing through the Strait of Hormuz, recent instability and reported disruptions in March 2026 led to a significant rerouting of shipping away from major regional hubs such as Dubai’s Jebel Ali and Oman’s Salalah.

In this shifting landscape, Pakistan’s ports, including Karachi Port, Port Qasim and Gwadar, have emerged as viable alternatives due to their location outside the immediate conflict zone but near key maritime corridors.

The brief noted substantial short-term gains. Karachi Port handled around 11,000 transhipment containers and recorded 133 vessel calls in March, exceeding its total transhipment activity of the previous year.

Port Qasim absorbed nearly 25 percent of diverted cargo, processing over 4,000 TEUs in a single day, reflecting a sharp surge in activity.

Gwadar Port also marked a symbolic milestone by berthing its first vessel in the transhipment network, indicating long-term potential as a deep-sea hub.

However, PIDE cautioned that these gains were temporary unless supported by structural reforms.

It pointed to Karachi’s urban congestion and limited expansion capacity, Port Qasim’s operational constraints, and Gwadar’s still-developing ecosystem as key bottlenecks that could hinder sustained growth.

A comparative analysis with regional ports underscored the gap in performance and infrastructure. Leading hubs such as Jebel Ali handle far higher cargo volumes and benefit from stronger connectivity, faster turnaround times, and more advanced handling equipment.

In contrast, Pakistan’s ports faced inefficiencies in processing speed, equipment availability, and berth utilization, limiting their global competitiveness.

The brief further emphasized that the challenge was not only infrastructural but also institutional.

Unlike integrated global ports that combined logistics, industrial zones and digital systems, Pakistan’s ports largely operated in isolation with weak hinterland connectivity and limited automation. Although lower labour costs offered an advantage, they were offset by high charges, procedural delays, and skill gaps.

To address these issues, PIDE recommended a comprehensive reform agenda focusing on infrastructure expansion, automation, increased container-handling capacity, and integration of ports with export processing and logistics zones.

It also called for stronger partnerships with global shipping lines, streamlined procedures and investment in workforce development.

PIDE said while geography has positioned Pakistan advantageously in the current maritime shift, sustained gains would depend on decisive policy action, urging the conversion of short-term cargo diversion into long-term economic and strategic advantage.