Pakistan National Shipping Corporation (PNSC or “the Corporation”) was established in 1979 under the Pakistan National Shipping Corporation Ordinance, 1979, as a statutory corporation wholly owned by the Government of Pakistan. The Corporation operates under the administrative control of the Ministry of Maritime Affairs and is classified as a state-owned enterprise (SOE) under the prevailing SOE governance framework. PNSC has been listed on the Pakistan Stock Exchange since 1980 and operates through a consolidated group structure comprising its principal shipping entity along with multiple wholly owned subsidiaries and affiliated undertakings.

The Corporation traces its origins to the strategic amalgamation of the former National Shipping Corporation (NSC) and Pakistan Shipping Corporation (PSC), effected under the Pakistan National Shipping Corporation Ordinance, 1979. This consolidation was designed to integrate the country’s maritime capabilities into a unified national shipping platform. Since its inception, PNSC has evolved into a fully autonomous commercial enterprise, progressively strengthening its operational, financial, and regulatory foundations while supporting Pakistan’s maritime and trade ecosystem.

As Pakistan’s national flag carrier, PNSC serves a critical function within the global maritime logistics chain, facilitating the transportation of dry bulk and liquid cargoes through a combination of owned and chartered vessels. The Corporation maintains a diversified fleet comprising oil tankers and bulk carriers, enabling it to support key national and international trade flows, particularly energy-related consignments. By Sep 2025, PNSC’s total cargo-carrying capacity stands at approximately 724,643 DWT, positioning the Corporation as a central maritime conduit for Pakistan’s import-driven economy. Beyond its core shipping activities, PNSC also engages in complementary commercial ventures, most notably real estate and maritime support services, which contribute to earnings stability and broaden the Corporation’s operational base.

Pakistan National Shipping Corporation (PNSC) is predominantly owned by the Government of Pakistan (GoP), which exercises control through the Ministry of Maritime Affairs with a direct holding of approximately 87.56%. A further 1.57% is retained by the PNSC Employees Empowerment Trust, resulting in a combined GoP-aligned shareholding of about 89.13%. The remaining shares are distributed among financial institutions, institutional investors, and the general public in line with its status as a publicly listed state-owned enterprise.

The stability is anchored in the enduring ownership and oversight of the Government of Pakistan through the Ministry of Maritime Affairs. Drawing on decades of experience in overseeing the maritime sector and related strategic enterprises, the Government provides deep institutional knowledge and consistent engagement. This sustained public-sector stewardship ensures predictable governance, reliable strategic direction, and a continuous commitment to the Corporation’s long-term objectives and operational resilience. 

The Government of Pakistan, through its specialized ministries such as the Ministry of Maritime Affairs, possesses sector-specific expertise. This acumen is rooted in a comprehensive understanding of global maritime policy, logistics, and shipping industry dynamics. The strategic guidance provided is therefore informed by technical proficiency and a long-term vision aligned with national economic objectives, ensuring decisions are made with a sophisticated awareness of the sector's complexities.

The financial standing of the ownership, namely, the Government of Pakistan, underpins PNSC’s credibility as a state-backed enterprise. While PNSC operates on a self-financing basis without recourse to federal budgetary allocations, the GoP’s majority ownership provides an implicit level of institutional backing that enhances counterparty confidence, particularly in areas such as fleet expansion, long-term charter arrangements, and banking relationships.

PNSC’s Board of Directors consists of nine members, including a Chairman, representatives from key federal ministries, independent professionals, and the Chief Executive Officer. The Government of Pakistan appointed directors through the Ministry of Maritime Affairs and the Finance Division, ensuring alignment with national maritime policy while maintaining corporate oversight. The Board’s composition reflects a blend of public-sector representation and private-sector expertise, enabling strong governance and strategic direction across the Corporation's operations.

PNSC’s Board comprises individuals with diverse professional and sectoral backgrounds, enabling broad-based oversight of the Corporation’s strategic and operational matters. The Board is led by Mr. Sultan A. Chawla, an experienced businessman whose leadership roles across major trade bodies and corporate institutions add depth to the Board’s commercial and governance perspective. The executive representation is provided through Mr. Syed Jarar Haider Kazmi, the Chief Executive Officer, who brings extensive expertise in financial management, vessel acquisition, commercial planning, and risk governance developed over his tenure as CFO and through his broader industry experience. Other Board members include senior government officials from the Ministry of Maritime Affairs and the Finance Division, as well as professionals from varied commercial backgrounds. This mix equips the Board with the knowledge required to make informed decisions and guide the Corporation effectively.

The Board operates through a well-structured committee system, including the Audit Committee, HR/Nomination & CSR Committee, Sustainability, Strategy & Risk Management Committee, and Procurement Committee. These committees are chaired by experienced Board members and provide focused oversight of financial reporting, internal controls, procurement activities, human-resource decisions, and strategic planning. Regular meetings and structured review processes ensure that operational, financial, and governance matters receive timely attention. This framework enhances accountability and supports compliance with corporate-governance regulations applicable to listed state-owned enterprises.

For the financial year ended June 2025, the statutory audit of PNSC’s financial statements was carried out by joint external auditors, Yousuf Adil, Chartered Accountants, and Grant Thornton Anjum Rehman, Chartered Accountants, who issued an unqualified opinion, affirming that the Corporation’s financial statements present a true and fair view in accordance with applicable accounting and reporting standards. The external audit process, combined with ongoing internal audit reviews and compliance with regulatory disclosure requirements, reinforces the reliability of PNSC’s financial reporting. This transparency strengthens stakeholder confidence and reflects the Board’s commitment to maintaining high standards of governance and accountability.

PNSC maintains a well-defined organizational structure, supported by a professional management team. Clear reporting lines ensure efficient communication, accountability, and operational effectiveness across all levels of the Corporation. This structured framework allows PNSC to uphold strong governance while enabling smooth and coordinated day-to-day operations.

The Corporation’s management team comprises experienced professionals with long-standing affiliations with PNSC. Mr Syed Jarar Haider Kazmi, former Chief Financial Officer and a 29-year veteran in finance, was appointed as CEO of PNSC. Supporting him, Mr Khurram Mirza, Executive Director (Special Projects & Planning), with extensive experience in domestic and international business development projects. Captain Mustafa Kizilbash, Executive Director (Commercial), brings deep expertise in commercial operations. Mr Syed Muhammad Babur, Executive Director (Ship Management), is an engineer who specialises in translating organizational needs into achievable goals through teamwork. Mr Syed Zeeshan Taqvi, Chief Financial Officer, has extensive experience in financial management. The team also includes Mr Muhammad Javid Ansari, Company Secretary, and Mr. Fayyaz Amin Malik, Chief Internal Auditor. Together, this leadership ensures effective governance and operational efficiency throughout the Corporation.

To enhance oversight and strategic decision-making, PNSC has established management committees comprising key management personnel. These committees play a vital role in ensuring the smooth functioning of the Corporation, supporting operational planning, and facilitating timely and effective decision-making across all business functions.

PNSC employs the “DANAOS” Enterprise Resource Planning (ERP) system as its primary MIS, replacing the earlier Ship Management Expert System (SES). This platform enables real-time connectivity between vessels and the head office, supporting operational efficiency through timely data sharing. In addition, the Corporation uses “Purple Finder”, an international satellite tracking system, to continuously monitor fleet movements. With onboard equipment trackers, this system ensures accurate and real-time monitoring of vessel locations, enhancing operational control and safety.

Strong governance practices underpin PNSC’s operations, reinforced by a hierarchical structure with clearly defined lines of responsibility. Accountability is maintained at every level, and the integrated information system supports essential business functions critical to a shipping corporation. This combination of governance, structure, and technology ensures that PNSC operates efficiently, safely, and in line with best practices.

The global shipping industry entered FY2025 on a relatively stable footing, supported by resilient tanker earnings and moderate seaborne trade growth, despite softer conditions in dry bulk. Geopolitical disruptions, particularly Red Sea rerouting and the Russia–Ukraine conflict, have reshaped trade routes, boosting tonne-mile demand for tankers while adding volatility across segments. The dry bulk market remained under pressure due to oversupply, weaker coal and grain demand, and slowing iron ore trade, although minor bulks such as bauxite provided partial support. On the tanker side, constrained fleet growth and extended voyage durations sustained firm crude freight rates, while product tankers faced softer earnings amid rising vessel availability. Going forward, fleet expansion, decarbonization-driven investment, and geopolitical risks will remain key drivers shaping freight markets and sector profitability.

As Pakistan’s national flag carrier, PNSC occupies a strategically significant position in the country’s seaborne trade, carrying approximately 11.12% of total national seaborne volumes in FY2025 (11.037 million tons out of 99.260 million tons), up from 10.32% in FY2024. The Corporation’s dominance is heavily skewed toward liquid bulk, where it transported 9.05 million tons, representing the vast majority of its total cargo and reaffirming its core exposure to tanker operations. In contrast, dry bulk volumes remained modest at 1.905 million tons, highlighting PNSC’s limited participation in the bulk carrier upside. This cargo mix underscores PNSC’s strong linkage to tanker market cycles and its strategic role in national energy logistics, while constraining its earnings sensitivity to any recovery in dry bulk markets.

During FY2025, PNSC reported total revenue of PKR 37,637 million, reflecting a year-on-year decline primarily due to the disposal of two vessels (MT Lahore and MT Quetta) during the third quarter, extended dry-docking and repair-related downtime, and margin compression on foreign-chartered vessels. While the Corporation continued to honor its Contracts of Affreightment (COAs) through chartered tonnage, the thinner margins on hired vessels weighed on overall profitability. Additionally, lower freight rates on refinery business and constrained fleet availability affected revenue generation. These pressures were partially offset by a significant increase in refinery cargo uplift, which supported voyage volumes; however, the cumulative impact of these factors still resulted in an overall moderation in revenue performance for the year.

PNSC’s profitability profile for FY25 reflects a mixed performance. The Corporation reported a gross profit of PKR 11,216 million, resulting in a gross margin of 29.8%, which declined year-on-year, primarily reflecting the reduction in revenue. Despite the pressure on core margins, net profitability remained exceptionally strong, supported by significant non-operating income, including gains on the disposal of vessels (MT Lahore and MT Quetta), lower finance costs, and capital gains on mutual fund investments. As a result, PNSC recorded a net profit of PKR 20,448 million, with a net margin of 54.3%, highlighting the substantial contribution of non-core income in sustaining bottom-line performance.

As a state-owned enterprise, PNSC integrates long-term efficiency and responsible operational practices into its strategic and operational decisions. Sustainability is reinforced through PNSC’s newly approved independent procurement framework under Section 17(2) of the SOE Act, 2023, making it the first SOE to receive such an exemption. By streamlining the acquisition process and enabling faster, more efficient decision-making, particularly for second-hand vessels, this policy supports the Corporation’s broader focus on fleet expansion and modernization. Leveraging this framework, PNSC is concentrating on building a modern, efficient fleet that aligns with evolving environmental standards and strengthens its long-term operational competitiveness.

During FY25, the Corporation’s working capital requirements remained low and were comfortably supported through internal cash flow generation. PNSC maintained an efficient working capital cycle, net working capital cycle of 27 days. Receivable days improved, declining to 35 days (FY24: 39 days), reflecting enhanced collection efficiency, while payable days increased to 8 days (FY24: 4 days), indicating a more measured approach to settling obligations. These changes contributed to smooth operational cash flows and underscore PNSC’s ongoing financial discipline and operational effectiveness.

In FY25, PNSC generated Free Cash Flow from Operations (FCFO) of PKR 9,883 million (FY24: 17,785 million. Although the year benefited from gains on asset disposals and mutual fund investments, the contribution from core operating activities was relatively subdued, leading to a moderation in FCFO. Despite this moderation, the FCFO remains adequate to support the Corporation’s operating and financial commitments. FCFO coverage of finance costs stood at 23.7x, indicating that the Corporation continues to maintain a comfortable liquidity buffer and healthy debt-servicing capacity.

PNSC sustained a conservative capital structure in FY25, with a leverage ratio of 1.9%, reflecting minimal reliance on external borrowings. This low gearing provides financial resilience and headroom for future expansion. With the planned fleet acquisition program, leverage is expected to rise, and high capital requirements may place some pressure on financial metrics; however, the Corporation’s equity base and strong cash-flow profile position it to manage the anticipated increase while maintaining balance-sheet stability. By pursuing agile procurement strategies and improving fleet efficiency, PNSC aims to strengthen operational performance and long-term sustainability.