ISLAMABAD: Pakistan National Shipping Corporation is determined to grab 40% share of total cargo transportation by 2020. Presently, total 80% imported oil is being transported by vessels of (PNSC). PNSC will increase the tune of business from $17 to seven billion per year in next five years.
Sources privy to chairman PNSC told this scribe here on Thursday that last year’s oil crisis was also because of dispute between PNSC and PSO over payments of receivables from each other.
PNSC manages corporate activities by a board of directors constituted by the Federal Government. Five of these Directors including the Chairman were nominated by Government (majority shareholder), while two Directors were elected by the Shareholders.
In this regard, PNSC needs availability of capital so that it may approach for international contracts for earning business. Therefore, PNSC demands provision of credit facility at least equal to receivables from PSO and other national organizations.
Summary related to this demand moved by Ministry of Ports and Shipping is lying pending with the Executive Coordination Committee of the Cabinet for approval, once this approval is given then PNSC will be able for devising a daring business deals in the international business.
To save national foreign exchange reserves, PNSC must also be given contract for transportation of imported LNG from Qatar. It will not only save the national foreign exchanges reserves but also enhance the profit of the PNSC.
Since PNSC is a strategic national asset, therefore, Ministry of Defence Production and Ministry of Commerce must also force subsidiaries to use PNSC vessels for the import and export of goods to save national exchequer.
Only with the support of the government departments PNSC can come up to its vision of of becoming prominent player in global shipping by maintaining diversified marine assets.
However, even then PNSC claims to be provider of reliable and efficient shipping services to overseas and Pakistan’s sea borne trade, maintaining relationship of integrity and trust with our customers, partners, employees, safeguarding interests of our stakeholders and contributing towards betterment of national economy, society and the environment.
It is pertinent to note here that Pakistan National Shipping Corporation (the Corporation) was established under the provisions of the Pakistan National Shipping Corporation Ordinance, 1979 and is principally engaged in the business of shipping, including charter of vessels, transportation of cargo and other related services and providing commercial, technical, administrative, financial and other services to third parties in relation to the business of shipping.
As at September 30, 2015, the Corporation has drawn Rs 8,733.757 million (June 2015: Rs 8,733.757 million) and Rs 1,261.543 million (June 2015: Rs 1,261.543 million) from syndicated term finance and TFCs respectively. The Corporation has also paid loan arrangement fee amounting to Rs 106.662 million which has been fully amortized.
During the year ended June 30, 2015, the Corporation has obtained a financing facility of Rs 4,500 million. Financing was obtained in the form of syndicated term finance loan of Rs 3,000 million, with the remaining amount of Rs 1,500 million through a musharika agreement. The financing carries mark-up at the rate of KIBOR+1.60%.
