Inland waterways (IWs) are globally recognised as one of the most cost-effective and environmentally sustainable modes of transportation. Pakistan has a vast network of rivers and canals; however, the modal split is imbalanced, and the waterways remain untapped despite their cost-efficiency. This insight argues that Pakistan's untapped inland waterways could serve as a complementary third corridor for cost-effective transportation in the long term, beside roads and rails. Pakistan's modal split is heavily imbalanced, with roads carrying over 96 per cent of inland freight, rail carrying only 4 per cent, and waterways carrying 0 per cent. It increases logistics costs and puts pressure on road infrastructure. Pakistan consumes 58.8 million liters of petroleum products daily, with imports accounting for 67 per cent of the trade deficit. Volatile energy prices and environmental commitments make efficient, cleaner freight essential, underscoring the need to explore inland waterways.

Despite the Indus River system's navigation potential, having a vast network of rivers and canals, inland water transport (IWT) in Pakistan remains untapped due to an unresolved jurisdictional debate between federal and provincial stakeholders. However, colonial laws like the Canal and Drainage Act of 1873 and the Inland Steam-vessels Act of 1917 could be amended for use.

In 2014, the Punjab government established the Inland Water Transport Development Company (IWTDC) as........

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