Karachi:
The Pakistan National Shipping Corporation (PNSC) recorded a profit of Rs. 20,182 million for the year ended June 30, 2024, making it the second highest annual profit in the Corporation's history, as outlined in the Chairman’s review. Despite being lower than the Rs. 29,994 million profit reported in the previous year, the Corporation maintained a strong performance in a fluctuating international shipping market. The decline from last year's record profit was attributed to the receding effects of the Russia-Ukraine conflict, which previously drove heightened demand and supply disruptions.
According to information available from the Pakistan Stock Exchange (PSX), the international shipping industry faced a reduction in freight rates as market conditions normalized. This trend impacted returns globally and locally. The Corporation, however, demonstrated resilience in adapting to evolving market conditions, reflecting a strategic focus on long-term objectives.
The financial results are detailed in the Director’s Report and Financial Statements for the year, with the Board of Directors affirming that the Group navigated the shifting market conditions successfully. The Board attributes the positive performance to strategic planning and operational management, which were overseen through various committees, including the Audit Committee, HR, Nomination and CSR Committee, Strategy and Risk Management Committee, and Procurement Committee.
The Corporation was categorized as a Strategic State-Owned Enterprise (SOE) following the enactment of the State-Owned Enterprise (Governance and Operations) Act, 2023, and the subsequent SOE Policy issued in November 2023. This classification, approved by the Cabinet Committee of State-Owned Enterprises, underscores the national importance of PNSC’s operations.
During the fiscal year, the Corporation experienced changes to its Board structure. Amendments to the Pakistan National Shipping Corporation Ordinance XX of 1979 increased the number of Board members from seven to eleven. Eight directors are now appointed by the Federal Government, while two are elected by minority shareholders for a period of three years. The Chief Executive Officer is appointed by the Federal Government from candidates shortlisted by the Board. Rear Admiral Jawad Ahmed HI (M) was appointed CEO for three months, with Mr. Umar Zafar Sheikh replacing Mr. Hassan Mehmood Yousufzai, and Ms. Alia Shahid retiring as a result of the ordinance changes.
According to information available from the Pakistan Stock Exchange (PSX), the Corporation’s Board remained committed to regular oversight and strategic direction. A comprehensive evaluation of the Board’s performance was conducted, focusing on vision and mission, strategic engagement, policy formulation, and fiscal oversight. The Board was assessed as satisfactory in achieving its objectives for the year.
The Board’s focus on corporate social responsibility (CSR) was highlighted by initiatives in healthcare, education, women’s empowerment, and environmental sustainability. The Corporation also continued its fleet development plan, adhering to international standards and client expectations, and explored opportunities for diversification and strategic partnerships.
Human resource management remains a challenge for PNSC due to its status as the only ship-owning entity in Pakistan. The Corporation emphasizes in-house training and development, and it noted that its trained professionals are often sought by international shipping firms. Investments in technology and digitalization are central to PNSC’s strategy, alongside its commitment to Environmental, Social, and Governance (ESG) principles.
The Corporation extended its appreciation to stakeholders and employees for their contributions, emphasizing the role of dedicated staff in achieving its strategic goals.