The first consignment of cement in 50 kilogram bags is expected to arrive from China in the first week of June to help improve the supply in the country.
The vessel would be carrying as much as 26,000 tonnes or nearly 520,000 cement bags, weighing 50 kilograms. It would be ordinary port land cement, with specification of 42.5 R, National Standard of GB. 1750199.
The vessel "mv ss Uthai Navee" would be the first one to arrive at Karachi Port and would be of highly quality standard. The Chinese brand is in high demand in Dubai, mostly consumed in construction of mega projects in the Middle East.
Raees Ashraf Tar Mohammad, chairman Pakistan Importers Commodity Association (PICTA), when contacted said that local importers are speedily fulfilling their commitments and helping the government to put a cap rather than reduce the prices of several commodities, including food items.
The government has allowed a subsidy of 60 rupees per bag on the cement consignments and the national exchequer is a net gainer of Rs 14 per bag from imported cement.
Explaining further, Raees said that the sales tax and 10 percent value added tax amounts to 36 rupees per bag while the central excise duty and 10 percent value added tax stood at 38 rupees per bag.
The total levy is 74 rupees per bag and the government would pay back or refund 60 rupees per bag as subsidy to bring cement into the country.
It is expected that two more vessels from China would arrive in next two weeks despite the fact that importers faced hardships to complete their documents.
Power lobbies of the cement sector created several hurdles to import cement. "But we would flood the market with imported goods with quality products and it would be available to all consumers".
He said that at the time of booking of the cement consignments the rate was in the band of 65 to 67 dollars per tonne, but following the rise of international oil prices and some demand in the region, the prices at the international went up, quoted at 70 to 71 dollars per tonne.
Raees urged the government to revert the decision of the ministry of shipping whereby reducing the number of days to five from seven to offload the imported products from the vessels arriving at the Karachi Port.
He explained that the new schedule has increased the cost of the imports and the common man is feeling the crunch of increased expenses.
Already the importer is paying 0.75 million to one million dollars to the shipping company and reduction of the number of days has increased the cost of the importer in the shape of demurrages.
The government in order to control prices, should enhance the number of days to at least 10 from the present five days schedule.
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