KARACHI, Jan 7: The national shipping policy to attract private sector vessels under Pakistani flag will be announced soon. The policy will bring incentives and guarantees for private shippers.

"A high-level committee is working out modalities and terms of reference in this regard and the policy would be made public soon," Ports and Shipping Minister Senator Babar Khan Ghauri said at a press conference here on Friday.

He said his ministry was focusing on increase of vessels under Pakistani flag to revive this industry for its enhanced contribution towards national economy and create maximum employment for locals.

The minister on the occasion announced the induction of oil tanker M.T. Lalazar into the fleet of Pakistan National Shipping Corporation. The PNSC purchased the tanker from its own resources. The oil carrier with cargo capacity of 113,881 tons was negotiated with a Greek company at $13.5 million before the steel prices shot up in the international market.

"As per prevailing steel prices in the international market, the price of this oil tanker would be more than $20 million," the minister pointed out. The minister said Lalazar was the fourth ship included in the PNSC fleet over the last 16 months and another two vessels - one bulk cargo carrier and one oil tanker - would be inducted in the fleet during 2005.

Mr Ghauri said the PNSC witnessed a record improvement in its scale of operations and profitability over the last couple of years owing to consistent policies of the government.

He said the corporation stood viable. "It earned Rs2.1 billion profit during the last fiscal year. The PNSC introduced cost-cutting methods and increased cargo activity through maximum flexibility in the operations."

"Now, PNSC vessels sail up to Brazil and Africa, besides covering the regional countries," he said. The minister told reporters that the PNSC had four oil tankers which transported 80 per cent of oil required to meet country's needs. "On an average we can lift 7.8 million tons of oil by these vessels."

"We were already bringing 7.35 million tons of crude oil per annum for National Refinery Limited, Pakistan Refinery Limited and Pak-Arab Refinery Company. Now another contract has been signed with Bosicar to transport one million tons of crude oil," Mr Ghauri. -APP