KARACHI: Pakistan has been removed from an international list of high-risk maritime areas used by marine insurers to determine whether ships should pay additional war-risk insurance premiums, Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry said.
The removal from the Listed Areas maintained by the Joint War Committee (JWC) of the London-based Lloyd’s Market Association means vessels calling at Pakistani ports will no longer routinely face additional war-risk insurance requirements linked to operating in designated high-risk waters.
The government says the decision is expected to lower shipping costs, improve the competitiveness of Pakistani exports and encourage greater international shipping and investment.
Chaudhry described the decision as a “historic achievement,” saying it would strengthen confidence among international shipping companies, traders and investors while making Karachi Port, Port Qasim and Gwadar more attractive for regional trade, cargo transit and transshipment.
“The removal of Pakistan and its territorial waters from the Listed Areas will reduce the additional financial burden on the country’s maritime trade and help Pakistani exports compete more effectively in international markets,” the minister said.
The Joint War Committee, which represents the London marine insurance market, maintains a list of areas considered to face heightened risks from war, terrorism or related security threats. While inclusion does not automatically trigger higher insurance premiums, vessels entering listed areas are generally subject to additional war-risk notifications and insurance requirements, increasing shipping costs.
Pakistan had remained on the committee’s listed areas for years. In March this year, the JWC also expanded its designated high-risk maritime zone in response to escalating tensions in the Gulf, extending the notification area eastwards to Pakistan’s coastline as part of a broader revision covering the Arabian Gulf, Gulf of Oman, Gulf of Aden and southern Red Sea.
According to Chaudhry, the government began efforts to secure Pakistan’s removal from the list in March after identifying its inclusion as a factor increasing maritime trade costs through additional war-risk insurance premiums and surcharges.
Prime Minister Shehbaz Sharif subsequently formed a committee, headed by Chaudhry, to pursue the matter through negotiations with Lloyd’s officials.
The committee presented Pakistan’s case using technical evidence and security data, the minister said, adding that months of discussions eventually resulted in Pakistan’s removal from the listed areas.
The minister said the government would continue efforts to improve maritime safety, expand port capacity and attract investment as part of its plans to position Pakistan as a regional logistics, transit and transshipment hub.
