The federal government has abolished the 18% sales tax on Pakistan’s shipping industry as part of the Budget 2026–27, aiming to reduce logistics costs, attract investment, and strengthen the country’s maritime sector.
Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry said the decision responds to long-standing demands from industry stakeholders and is expected to improve the competitiveness of maritime services. He added that the tax relief will help expand domestic shipping operations and make the sector more attractive for investment.
According to the minister, removing the tax will lower transportation and logistics costs for businesses, improve trade efficiency, and encourage fresh investment in shipping and related industries. He also said the measure could enhance supply chain performance by reducing overall operating expenses.
The government believes the policy will support growth in the blue economy, create a more business-friendly environment, and generate wider economic activity across ports, logistics networks, and maritime services.
Officials further expect the move to encourage greater private-sector participation, accelerate maritime infrastructure development, and increase the shipping industry’s contribution to Pakistan’s overall economy.
