PAKISTAN Law and Practice Contributed by: Faisal Daudpota, Daudpota International
accordance with the limits defined in the MSO 2001 and the CLC-92, provided the incident did not result from their personal fault. • Maritime liens and arrests: in the event of a colli - sion or salvage, the claimant can initiate an admi - ralty suit in the High Court and request the arrest of the vessel to secure claims. 3.3 Convention on Limitation of Liability for Maritime Claims Applicability of the 1996 Protocol to the 1976 Convention (LLMC) While Pakistan is a signatory to the Convention on the International Maritime Organization (1948) and has ratified UNCLOS, the 1996 Protocol to the Con - vention on Limitation of Liability for Maritime Claims (LLMC) 1976 is not directly shown as ratified or fully domesticated in the provided search results. However, standard terms in Pakistan’s shipping industry, such as those used by DP World Karachi, reference the “1976 Convention on Limitation of Liability for Mari - time Claims, and the 1996 Protocol thereto” as appli - cable limitation conventions. Note: the 1996 Protocol substantially increases the liability limits set by the 1976 Convention. 2012 Amendments (Increased Limits) The 2012 amendments to the 1996 LLMC Protocol (which entered into force internationally on 8 June 2015, increasing liability limits) generally apply to con - tracting states that have adopted the 1996 Protocol. As the status of Pakistan’s accession to the 1996 Pro - tocol is not explicitly confirmed, it is not certain if the 2012 amendments are formally binding in domestic law, although the industry often follows international standards. Applicable Domestic Legislation The primary legislation governing maritime liability in Pakistan includes: • the MSO 2001 – this is the main statute governing merchant shipping, registration and liabilities; • the Maritime Zones Act, 2013 – this Act (which replaced the 1976 Act) defines the maritime zones and applies to the territorial sea, exclusive eco -
nomic zone, and other maritime areas of Pakistan; and • the Carriage of Goods by Sea Act, 1925 – this Act incorporates the Hague Rules. 3.4 Vienna Convention on the Law of Treaties Pakistan signed the Vienna Convention on the Law of Treaties, 1969 (VCLT) on 29 April 1970, but has not ratified it. Although Pakistan is not a party to it, the VCLT’s guidelines for treaty interpretation are recognised by Pakistani courts as customary international law. While the VCLT is not a direct statute, Pakistani courts, especially the Supreme Court and the High Courts, increasingly rely on international law to inter - pret domestic legislation. The superior judiciary in Pakistan has shown a willing - ness to look at international legal instruments, includ - ing those not formally ratified, to ensure compliance with the “comity of nations” and international obliga - tions. 3.5 Procedure and Requirements for Establishing a Limitation Fund In Pakistan, a limitation fund, primarily used in mari - time law to limit liability for ship-owners, is established by depositing a sum (or guarantee) with a court of competent jurisdiction based on vessel tonnage, gov - erned by the MSO and international conventions like the LLMC 1976. The fund is set by ship-owners or salvors to cap liability for maritime claims. Key Aspects of Establishing a Limitation Fund • The following can set a fund: shipowners, charter - ers, managers, operators and salvors. • Procedure: (a) initiate legal action in the relevant court (eg, the High Court) seeking to limit liability; (b) calculate the total limit based on the vessel’s tonnage (limitation tonnage) as per the LLMC 1976; (c) deposit the calculated amount into the court; and (d) provide a bank guarantee or deposit cash, en - suring it is immediately available to claimants.
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