PAKISTAN Law and Practice Contributed by: Faisal Daudpota, Daudpota International
10. Additional Maritime or Shipping Issues 10.1 Other Jurisdiction-Specific Shipping and Maritime Issues There were no other shipping or maritime issues rel - evant to Pakistan at the time of writing.
9.3 Trade Sanctions Pakistan incorporates international sanctions, specifi - cally UNSC resolutions, into its domestic legal frame - work to ensure compliance. UNSC Sanctions Under the United Nations (Security Council) Act, 1948, the Ministry of Foreign Affairs issues orders to enforce asset freezes, arms embargoes, and travel bans. Targeted Financial Sanctions The Ministry of Interior utilises the Anti-Terrorism Act (ATA), 1997 to identify proscribed entities and imple - ment financial sanctions. 9.4 International Conflict The Red Sea crisis has created severe legal and com - mercial risks for Pakistan, primarily driven by forced rerouting via the Cape of Good Hope. Key conse - quences include: • legal friction – companies may face contract disputes, invoking “force majeure” or frustration clauses due to the impossibility of performance or necessary route deviations; • logistical setbacks – rerouting adds 10–14 days to transit, risking damage to time-sensitive exports like textiles and agriculture; and • rising costs – war risk insurance premiums have surged (up to 2% of vessel value), while higher freight rates contribute to inflation and expensive raw material imports.
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