ISLAMABAD: The All Pakistan Textile Mills Association (APTMA) has sought the prime minister’s intervention to address the prolonged delay in the release of imported cotton by the Directorate General of the Department of Plant Protection (DG DPP), Karachi.
According to an official statement, the APTMA has stated that for the past three to four months, cotton imports from the USA and Brazil have been blocked at the port, leading to significant financial burdens due to escalating demurrage charges, which now exceed Rs50 million.
These charges are being paid in dollars to foreign companies, exacerbating the economic strain on the country.
Little business on cotton market
The shipments in question were dispatched under valid import permits.
However, unforeseen delays during transit, which were beyond the control of the importers, have resulted in the shipments arriving after the expiry of the import permits.
The APTMA is of the view that despite multiple appeals and commitments from the Ministry of National Food Security and Research (MNFSR), the Ministry of Commerce, the Ministry of Interior, and other relevant authorities, the DG DPP has failed to act.
Even after assurances from the MNFSR following a letter from the Prime Minister’s Office, the DG DPP has not granted the necessary release orders.
This situation is particularly perplexing given that similar cases have been resolved in the past by the DG DPP, who possesses the authority to grant release orders.
The textile body is of the view the ongoing blockage of cotton shipments is causing severe disruptions, leading to escalating demurrage charges and threatening the industry’s ability to meet export targets and maintain competitiveness in the global market.
The APTMA has further stated that the DG DPP is withholding release orders under the pretext of actions taken by the Federal Investigation Agency (FIA) against his department.
Allegedly, the DG DPP is linking the issuance of release orders to the FIA’s investigations, stating that until cases against DG DPP are resolved, he will not release shipments with expired import permits despite the provision in the rules.
“This arbitrary decision, intended to create pressure against the FIA, has resulted in numerous cotton shipments languishing at ports, accruing heavy demurrage charges that are detrimental to both the foreign companies involved and the Pakistani economy at large,” Shahid Sattar, executive director APTMA said, adding that this obstruction is severely hampering our ability to meet export demands and maintain the competitiveness of the textile sector.
He said the refusal to release shipments on the grounds of unresolved FIA cases indicates a blatant misuse of authority and unjust punishment inflicted upon the entire industry.
Despite earnest appeals and interventions by the secretary of the Ministry of National Food Security and Research, no tangible action has been taken by the DG DPP to address the issue.
“APTMA have faith in the prime minister’s commitment to upholding justice and fostering a conducive environment for business and trade in Pakistan. Swift action on this urgent matter is crucial to alleviate the financial burden imposed by external remittances and prevent further harm to Pakistan’s economy and textile exports,” Sattar maintained.
Copyright Business Recorder, 2024
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