The Pakistan Ship’s Agents Association (PSAA) has brought attention to a critical issue that is unnecessarily hindering the country’s maritime trade. In a letter to Prime Minister Shehbaz Sharif and other top officials, the shipping trade organization, operating under the Directorate General of Trade Organizations in the Ministry of Commerce, warned of an impending crisis due to a planned action by the Federal Board of Revenue (FBR).

The FBR intends to require non-resident ship owners to register on its portal, obtain a National Tax Number (NTN), file tax returns, and navigate Pakistan’s unpredictable tax environment. This unilateral decision by the FBR is creating significant challenges for foreign-flag vessels, which are essential for Pakistan’s trade, according to the PSAA.

This issue is particularly perplexing, considering that all non-resident foreign shipping lines have authorized representatives in Pakistan who are already fulfilling all legal requirements regarding income tax.

The situation has been escalating for the past two years, and we have previously raised our concerns with the Federal Tax Ombudsman, who ruled in our favor. The technical difficulties related to this situation are detailed in our letter dated May 15, 2025, addressed to Mr. Wasiq Mushtaq, Assistant Commissioner, IR Unit-IV, Range B, Zone VI, Corporate Tax Office in Karachi.

Furthermore, the FBR’s actions contradict the government’s current policies aimed at facilitating ease of doing business, especially with foreign entities. We urge the concerned authorities to restore the previous system and engage in meaningful dialogue with our Association to reach a fair and amicable solution, rather than resorting to coercive tactics that could disrupt Pakistan’s imports and exports.

The PSAA hopes for an immediate resolution to ensure the smooth operation of seaborne trade