The government has announced a new tax incentive policy for Pakistan-based shipping companies to lessen dependence on foreign vessels.Addition of more Pakistan-registered ships with the involvement of private sector would help reduce freight cost by around Rs5 billion paid to the foreign shipping companies, Minister for Maritime Affairs Ali Zaidi told a press conference on Wednesday.Flanked by Adviser to Prime Minister on Commerce Abdul Razak Dawood, he said that new companies would be exempted from income and sales tax as well as customs duty till 2030. Pakistan flag carriers would be given berths on priority with payment of freight charges in Pakistani rupees instead of US dollars to minimise reliance on foreign vessels, he added.The minister said along with Pakistan National Shipping Corporation (PNSC), the new shipping companies would be given equal preference in lifting private sector cargo through a bidding process. Zaidi said PNSC would continue to be charged one dollar per gross register tonnage (GRT) while the new companies would have to pay $0.75.He said the initiative would generate more employment opportunities for seafarers in the country. The minister said hydrocarbon cargoes imported by government organisations and state-controlled enterprises, including petrol, high sulphur furnace oil, low sulphur furnace oil, high-speed diesel, liquefied petroleum gas, crude oil and coal, would be imported on free-on-board (fob) basis through PNSC-owned vessels.Zaidi revealed that new government-to-government liquefied natural gas (LNG) import contracts would be negotiated on fob basis and shipments would be made through PNSC-owned or PNSC-chartered vessels.Published in The Express Tribune, September 19, 2019.Like Business on Facebook , follow @TribuneBiz on Twitter to stay informed and join in the conversation.