The federal government has announced the abolition of the 18% sales tax on Pakistan’s shipping industry as part of the Budget 2026-27, a move aimed at strengthening the country’s maritime and logistics sectors.
The decision has been welcomed by industry stakeholders and government officials, who believe it will significantly reduce operational costs for shipping companies and encourage greater investment in the sector. The removal of the tax is expected to improve the competitiveness of Pakistan’s maritime services while supporting trade and economic activity.
Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry described the measure as a major step toward revitalizing the country’s maritime economy. According to the minister, the tax exemption fulfills a long-standing demand of the shipping industry and is expected to create new opportunities for business growth and employment.
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Industry experts say the abolition of the sales tax will help lower logistics expenses, making Pakistani ports and shipping services more attractive for local and international operators. The move is also expected to encourage fleet expansion and modernization within the sector.
Pakistan’s maritime industry plays a crucial role in facilitating international trade, with the majority of the country’s imports and exports transported through sea routes. By reducing the tax burden, the government aims to improve efficiency, attract private investment, and strengthen the overall logistics ecosystem.
The latest relief measure forms part of broader efforts to support economic growth, enhance trade competitiveness, and unlock the potential of Pakistan’s blue economy in the coming years.
