Expected budget incentives: importers leave thousands of containers uncleared at ports

As the government is all set to unveil Budget 2009-10 today, Saturday, the ''incentives-conscious'' importers keeping up with their annual tradition, dumped thousands of loaded containers at ports. According to sources around 15,000 containers loaded with different imported commodities were lying in an open area near Engro Vopak Chemical Terminal (EVCL) at Port Qasim.
Same is the case with Karachi Port where, according to an official from Pakistan International Container Terminal (PICT), the clearance of imported containers has witnessed a visible decrease because of the budget factor. "Every year on the eve of federal budget importers keep their cargo at ports for weeks to see the positive or negative impact of budget on their businesses," the official added.
He said a month ago daily outward movement of imported containers stood at 750 TEUs, but now it has shrinked to 410-450 TEUS only. A Port Qasim official said that the stored containers were carrying those special cargoes on which the government was expected to either waive off the duty or at least reduce the same.
About the possible port demurrage, the sources said inside-port storage had always been inexpensive, hence a good choice for traders to avoid sky-high rents of warehouses. Citing reasons for the illegitimate and anti-people activity, a ports and shipping expert held both the government and importers responsible. "This happens every year as our importers have developed a budget-awaiting mentality to take advantage of some expected incentives," he added.
Withholding a commodity at ports for weeks would certainly lead to shortage of that very item in the local market that could move the inflation up, he said. The expert said the PPP-led coalition government should get rid of decades old SROs culture and adopt long-term strategies to reform the ailing economy.