Pakistan removed from war-risk list, reducing insurance costs

Key Takeaways

Pakistan and its territorial waters have been removed from the Lloyd’s Market Association's Joint War Committee (JWC) list.
The decision will reduce war-risk insurance premiums and shipping costs for Pakistani exports.
Minister Muhammad Junaid Anwar Chaudhry says this move will improve Pakistan's competitiveness in international markets.

Pakistan has been removed from the Listed Areas of the Lloyd’s Market Association’s Joint War Committee (JWC), a significant development that will reduce war-risk insurance premiums and shipping costs for the country. This decision was welcomed by Federal Minister for Maritime Affairs, Muhammad Junaid Anwar Chaudhry, who stated it would improve Pakistan's competitiveness in international markets.

According to Chaudhry, this removal is the result of sustained negotiations with Lloyd’s officials over several years. The issue was first noted on March 13, 2026, when Pakistan and its maritime areas had been included in the JWC list for two decades following the US declaration of war on terror after the 9/11 attacks in 2001.

The minister highlighted that additional war-risk insurance premiums and surcharges were imposed on Pakistani shipping and trade due to their inclusion. To address this, Prime Minister constituted a special committee headed by Chaudhry, which held lengthy meetings for several hours after iftar during Ramadan to present Pakistan’s case based on technical evidence and factual data.

Chaudhry emphasized that the decision would reduce the financial burden on Pakistan's maritime trade and help its exports compete more effectively in international markets. He added that this development is an important step towards making Pakistan a major regional logistics, transit, and transshipment hub.

The minister also noted that the government will continue efforts to improve maritime safety and efficiency, expand port capacity, and attract investment in the sector. This move is expected to make Karachi Port, Port Qasim, and Gwadar more attractive to global shipping lines and investors, creating opportunities for regional trade, cargo transit, and transshipment.

The removal from the JWC list will have a positive impact on various sectors of Pakistan's economy, particularly those related to maritime trade. It is anticipated that this change will lead to lower insurance costs for businesses and individuals involved in shipping and trade operations within Pakistan’s territorial waters.