By Dr Mushaiyada Mairaj Shipping rarely dominates public debate, yet it remains the backbone of the global economy. More than 70 per cent of global trade, accounting for around 80 per cent of goods, is carried by sea. A successful and cost-effective maritime transport sector is essential for goods shipped in containers, including textiles, rice, surgical products, seafood and sporting goods from Pakistan. Yet the regulations governing international shipping are evolving rapidly. Maritime decarbonisation is no longer on the periphery of environmental policy; it is at the centre of international trade, and countries that fail to adapt will lose both their competitiveness and their strategic value.
This change is not merely an environmental challenge for Pakistan; it is an economic necessity. Maritime transport is vital to the country’s economic growth, export performance and development, as more than 95 per cent of Pakistan’s international trade passes through its ports. While developed countries, including the world’s leading maritime nations, are investing in clean fuels and smart ports, Pakistan’s approach remains limited and ineffective. The question is no longer whether green shipping will reshape global trade, but whether Pakistan will be prepared when it does.
The transformation is being driven by the International Maritime Organization (IMO), the United Nations body responsible for setting global shipping regulations. Over the past decade, the IMO has gradually tightened its environmental regulations to reduce emissions from one of the world’s most difficult sectors to decarbonise. The foundation of these efforts is MARPOL Annex VI, which regulates emissions of sulphur oxides (SOx), nitrogen oxides (NOx), ozone-depleting substances and greenhouse gases. Since January 2020, the global sulphur cap has limited the sulphur content of marine fuel to 0.5 per cent, requiring shipowners either to switch to cleaner fuels or install exhaust gas cleaning systems.
The IMO has also introduced two significant measures: the Energy Efficiency Existing Ship Index (EEXI), which establishes minimum technical efficiency standards for existing vessels, and the Carbon Intensity Indicator (CII), which measures a ship’s annual operational carbon efficiency. These measures place environmental performance on the same footing as commercial performance by requiring ships with persistently poor CII ratings to implement corrective action plans.
The IMO revised its Greenhouse Gas (GHG) Strategy in 2023, setting a goal for international shipping to achieve net-zero greenhouse gas emissions by or around 2050, while reducing emissions by at least 40 per cent by 2030 compared with 2008 levels. In April 2025, member states adopted the IMO Net-Zero Framework, which built on this strategy by proposing the world’s first globally applicable carbon pricing system for shipping, alongside a greenhouse gas fuel-intensity standard. Few observers doubt that the regulations will become more stringent, although their formal adoption has been delayed by political divisions among member states, including opposition from the United States and several oil-producing countries. The direction of travel is clear; only the timing remains uncertain.
These delays should not become an excuse for Pakistan to postpone reforms. Although several initiatives have been introduced to improve compliance with IMO regulations, including the domestic production of IMO-compliant Very Low Sulphur Fuel Oil (VLSFO), Green Port initiatives at Port Qasim and efforts to attract investment in sustainable maritime infrastructure, considerable work remains to be done. Pakistan’s ports continue to rely largely on infrastructure designed for conventional fossil fuel shipping. Emissions monitoring remains limited, shore power is unavailable, alternative fuel bunkering facilities are scarce, and digital systems remain underdeveloped. Unless the pace of reform accelerates, Pakistan risks becoming less competitive as the global shipping industry moves towards decarbonisation.
The commercial consequences extend well beyond the maritime sector. Pakistan’s export industries, including textiles, seafood, leather, rice and sporting goods, may face higher costs and reduced competitiveness if the country’s ports fail to comply with the environmental standards increasingly demanded by global buyers. Meanwhile, regional competitors such as Singapore, the United Arab Emirates and India are investing heavily in green ports, alternative fuels and digital maritime infrastructure to strengthen their position in global trade. If Pakistan fails to embrace sustainable shipping practices, it will be left behind.
Pakistan should adopt a comprehensive National Green Shipping Strategy aligned with the IMO’s 2023 Greenhouse Gas (GHG) Strategy, the Paris Agreement and the country’s broader blue economy objectives. Green shipping is no longer solely an environmental issue; it is equally about trade competitiveness, industrial modernisation and economic resilience. Pakistan must strengthen emissions monitoring, develop shore power infrastructure, expand renewable energy and alternative fuel facilities, and modernise its ports and customs systems to remain competitive. The global shipping industry has already embarked on the journey towards decarbonisation, and Pakistan still has a limited window in which to act.
Furthermore, the government should strengthen incentives for environmentally friendly ship recycling and green ship repair, while promoting other sustainable marine industries capable of attracting foreign investment. Pakistan must also play a more active role in IMO negotiations and prepare to participate in the IMO Net-Zero Fund to access financial and technical assistance for technology transfer, capacity-building programmes and climate finance before the new regulations come into force.
(The writer is a research fellow at the National Institute of Maritime Affairs (NIMA). Her core areas of research focus on Pakistan’s coastal ecosystems, specifically targeting the intersection of environmental risks and the sustainable blue economy. She can be reached at editorial@metro-morning.com.)
