There have been calls for Pakistan's protectionist flag vessel ordinance to be amended to keep up-to-date with the changing demands of international trade.

Under existing laws, foreign flag vessels must apply for a waiver, or a no-objection certificate from the country's Department of Shipping before the owners of foreign ships can be allowed to load goods at Pakistan's ports for export, provided no domestic carrier is able to do the job.

This protection order has been in place since 1982 and gives priority to domestic shipping lines to carry export goods overseas.

The situation is said to be creating tension between local and foreign shipowners by hindering port operations, creating delays and leading to cargo congestion at the nation's ports.

"This type of system is very old and against the spirit of free market economy," said Amirul Haque, chairman of the standing committee on ports and shipping of the FBCCI and CCCI (Chittagong Chamber of Commerce and Industry).

Critics of the system maintain that ships belonging to domestic carriers are unsuited to making long journeys at sea, particularly in bad weather, or lack sufficient capacity. The vessels are also said to be poorly maintained, ill-equipped and unable to maintain expected arrivals and departures at ports.