PAKISTAN Law and Practice Contributed by: Faisal Daudpota, Daudpota International
1.4 Requirements for Ownership of Vessels Vessels registered in Pakistan must generally be owned by citizens, companies with their principal place of business in Pakistan that control operations from there, or parties permitted by the federal gov - ernment. Foreign ownership is restricted, but foreign entities may operate through a locally registered sub - sidiary. Registration of vessels under construction is possible, often requiring documentation of the builder and construction progress. Key Requirements and Ownership Rules • Eligible owners: according to the Registration of Ships Rules, 2002, ownership is restricted to Pakistani citizens (by birth or migration), individu - als with Pakistani citizenship via registration, or companies with a principal place of business in Pakistan. • Foreign ownership: while primarily a closed registry for citizens, foreign investors can potentially own vessels through a locally registered subsidiary or with specific permission from the federal govern - ment. • Registration process: for individuals, this requires a declaration of ownership on stamped paper, notarised, with photographs; and for companies, the memorandum of association and incorporation certificates. • Vessels under construction: a vessel under con - struction can be registered, requiring documenta - tion such as a declaration from the builder and proof of ownership. • Fishing vessels: registration for fishing boats requires submission to the registrar of fishing ves - sels nearest to the owner’s residence or construc - tion site. Registration is processed through the MMD Karachi, and can typically be completed in approximately five working days upon submission of all required docu - mentation. 1.5 Temporary Registration of Vessels Pakistan’s legal framework, under the Merchant Ship - ping (Registration of Ships) Rules, 2002, allows for temporary, specific registration, particularly for bare - boat charters lasting at least six months. Dual registra - tion is generally not permitted, as the registry requires
a declaration of ownership, although temporary bare - boat charter registry allows for operation under the Pakistani flag while the primary registry is suspended. Key Details on Vessel Registration in Pakistan • Temporary registration: the Rules of 2002 permit the registration of ships on bareboat or demise charter for a period of no less than six months. • Requirements: a vessel can be registered if the charterer/operator is a Pakistani citizen or a body corporate allowed to be a shipowner under the MSO 2001. • Dual registration: while not explicitly allowing concurrent full registration, the system facilitates “flagging in” for chartered vessels, allowing them to operate as Pakistani ships. • Process: applications are submitted to the MMD. • Documentation: a declaration of ownership, a builder’s certificate, and custom documents are required. The registration process aims to establish ownership and ensure compliance with safety regulations, and owners can benefit from incentives under the Mer - chant Marine Policy 2001. 1.6 Registration of Mortgages In Pakistan, primarily the Securities and Exchange Commission of Pakistan (SECP) maintains the regis - tration of mortgages and charges created by compa - nies under the Companies Act, 2017. Key Requirements for Registration (Corporate) • Form-10: duly signed form detailing the charge, filed within 30 days of creation; • instrument of charge: original or verified copy of the mortgage deed; • affidavit: duly signed and attested by a commis - sioner of oaths; • proof of payment: fee submission receipt; and • no objection certificate (NOC): a conditional NOC, if applicable. Separately, there is also a ship ownership and mort - gage registry, managed by the MMD.
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