Deputy Prime Minister and Foreign Minister Ishaq Dar on Friday welcomed the decision of the Lloyd’s Market Association’s Joint War Committee (JWC) to remove Pakistan from its Listed Areas for war risk insurance.

In a post on X, Dar said the decision was "expected to lower shipping and insurance costs, facilitate trade, and support our economic growth".

He further added that this important milestone was "achieved through the concerted efforts of the government of Pakistan, ably coordinated by our High Commission in London" and "reflects growing international confidence in Pakistan".

The minister also appreciated Lloyd’s for its constructive engagement throughout the process.

READ: Pakistan exits war-risk list

Earlier, the Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry announced the news in a video message.

Pakistan had been on the Lloyd's JWC's war-risk "Listed Areas" for several decades. The listing required many shipowners to pay additional war-risk insurance premiums when they aimed to call at Pakistani ports.

The minister for maritime affairs termed the development a milestone, saying the decision would improve the competitiveness of Pakistan's exports and strengthen the confidence of international shipping companies, traders and investors in the country.

The minister said the prime minister had constituted a special committee, headed by him and comprising representatives of the Ministry of Maritime Affairs, ports and the private sector. The committee held extensive negotiations with Lloyd's officials and presented Pakistan's case through technical evidence and factual data, ultimately securing the country's removal from the list. Officials say it will also enhance trade activities at ports, which had already jumped due to the US-Iran war.

He said the move could also make Karachi Port, Port Qasim and Gwadar Port more attractive to global shipping lines and investors, creating opportunities for regional trade, cargo transit and transhipment.

The minister mentioned that the issue was taken up on March 13, when it was noted that Pakistan and its maritime areas had remained on the JWC's Listed Areas for decades. Their inclusion had resulted in additional war-risk insurance premiums and surcharges for Pakistani shipping and trade.