Finance Ministry blocks draft ports authority overhaul

The Ministry of Finance has rejected the current draft of the proposed Pakistan Maritime and Port Authority law, saying the framework contains major structural weaknesses and could conflict with reform commitments linked to the International Monetary Fund program.

In its review, the ministry said the legislation cannot move ahead in its present form and directed that a revised version be prepared in line with IMF-related reform requirements. Officials argued that combining regulatory and operational authority in one institution could create a serious conflict of interest.

The ministry recommended the creation of a separate body to manage administrative and operational functions in the maritime sector. It also warned that the proposed setup could compromise the autonomy of major entities such as Port Qasim Authority, Karachi Port Trust and Gwadar Port Authority.

Additional recommendations included aligning governance changes with the State Owned Enterprises Act 2023, separating the roles of chairman and chief executive officer, tightening financial oversight, transferring surplus funds to the federal treasury, enforcing pre-audit procedures and formalizing internal audit systems. Officials said failure to revise the draft could trigger IMF objections and complicate Pakistan's ongoing reform commitments.