• Decision expected to eliminate insurance premiums, surcharges on shipping
• Minister says move will enhance export competitiveness
• Pakistani ports set to benefit from increased international shipping and trade
ISLAMABAD: Pakistan and its territorial waters have been removed from Lloyd’s list of countries in a “war zone” after more than two decades, raising hopes of a reduction in war-risk insurance premiums for shipping lines coming to the country and lifting the business repute of its three ports.
The announcement was made by Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry while addressing the Pakistan Logistics and Shipping Summit on Thursday.
The Listed Areas of Lloyd’s Market Association’s Joint War Committee (JWC) removed Pakistan and its territorial waters from its list, 25 years after inclusion following the Sept 11, 2001, attacks in the United States.
The event was attended by key players in logistics and shipping business, freight forwarders, maritime experts, policymakers and senior management of the country’s three ports.
The minister welcomed the decision and said it would improve the competitiveness of Pakistani exports and strengthen the confidence of international shipping companies, traders and investors in the country.
He hoped the move would make Karachi Port, Port Qasim and Gwadar more attractive to global shipping lines and investors, creating opportunities for regional trade, cargo transit and transshipment.
The minister said the issue was taken up with Lloyd’s on March 13 after it was noted that Pakistan and its maritime areas had remained on the JWC’s Listed Areas since 2001. Consequently, additional war-risk insurance premiums and surcharges were imposed on Pakistani shipping and trade. Junaid Chaudhry said the war risk premium had been fluctuating, “but now it has dived to zero”.
Presenting Pakistan’s case
After the report was forwarded to the prime minister, he constituted a special committee to prepare Pakistan’s case for removing it from the list of countries in a war zone.
The committee was headed by Junaid Chaudhry and it included stakeholders from the three ports, the ministry of maritime affairs and the private sector.
The committee held negotiations with Lloyd’s officials and presented Pakistan’s case on the basis of technical evidence and factual data, adding that sustained negotiations eventually resulted in the country’s removal from the list.
He said the decision would reduce the additional financial burden on the country’s maritime trade and help Pakistani exports compete more effectively in the international market.
“The development was an important step towards making Pakistan a major regional logistics, transit and transshipment hub,” Mr Chaudhry added.
Retired Rear Admiral Shahid Ahmed, the chairman of Karachi Port Trust, highlighted the KPT’s 138-year history and its achievements.
He said the new initiatives taken to cater for growing transshipment and transit trade, following the US-Iran war. would soon transform the Karachi port into a “smart port”.
Asif Pervaiz, the CEO of Glaxify, Muhammad Rajpar, the chief of Pakistan Ship’s Agents Association (PSAA), and others informed the gathering about opportunities in the maritime sector.
Published in Dawn, July 31st, 2026
