Journal of Contemporary Issues in Business and Government

Abstract

The contemporary period of worldwide Shipping industry has observed fluctuating
movements in ship registration procedures previously traditional and now to open registries, a
substitute option for the business as usual practices. Afterwards the 20th century, the Flag of
Conveniences (FOCs) have moulded a huge economic footmark worldwide with their increasing
tonnage, hence influenced the traditional registry within the two processes. The shipping sector of
Pakistan has not lived upon its full potential. The global share of Pakistani shipping market has
shrunk during last three decades and there are several reasons including registration procedures of
ships which is now a significant and major problem. Pakistan’s Ship registry procedure, though in
compliance with international obligations, is an influential problem due to the close registry, and
lengthy as well as burdensome process. The MSO 2001 ship’s registration rule, Merchant Marine
Policy (MMP) of Pakistan 2001, and Ship Registration Rules 2002 govern the registry of ships.
However, based on analysis, the current study argues that Pakistan requires revamping of its
registry as well as legal/institutional/policy framework by reformulation and promulgation of fresh
new version of MMP as the recent amendments have not curtailed the real issues so far
outstanding vis-a-vis matter related to the ship registry procedure, in order to harness the real
potential of shipping sector. It needs to formulate policies within the context of modern practices
of FOCs as well as domestic registration, and at the same moment addressing the requirements to
come across the responsibilities internationally.