The federal government has been informed by ship agents that all export shipments may stop because foreign shipping companies are considering ceasing their operations in Pakistan after banks stopped payment of freight charges to them due to dollar crunch.
Apart from bordering nations, practically all of Pakistan’s foreign logistics are handled by sea, and any disruption might have a significant impact on the nation’s exports, Pakistan Ship’s Agents Association (PSAA) chairman Abdul Rauf warned Finance Minister Ishaq Dar through a letter.
The annual freight bill of Pakistan is around $5 billion, and foreign companies receive the charges in international currencies mainly the “greenback”.
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The ship agents have pointed out that due to the current state of affairs, the shipping sector was already suffering due to economic ups and downs, and any further delays in remitting their legitimate dues will constrain Pakistan’s external trade.
“If the international trade is stopped the economic situation will worsen,” the association warned, adding that the foreign shipping lines are already considering winding up their services in Pakistan due to reduced cargo volumes.
Moreover, the PSAA chairman sent letters to the State Bank of Pakistan’s governor Jameel Ahmed, the ministers of commerce Syed Naveed Namar and Faisal Sabzwari.
Mr. Rauf asked the competent ministries and departments to step in and allow the immediate transfer of surplus freight amounts to the appropriate foreign shipping lines in order to maintain the continuation of Pakistan’s seaborne trade.
“Due to discontinuation of outward remittance of surplus freight amounts to respective foreign shipping lines, was hampering Pakistan’s seaborne trade which is heavily dependent on foreign shipping lines,” the letter added.
