Pak-Afghan transit trade: Absence of regulatory body for shipping lines ‘causing hardship’: PAJCCI

KARACHI: Pakistan Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) President Jawed Bilwani Monday said that in addition to ongoing issues impacting bilateral and transit trade with Afghanistan, the absence of regulatory body for shipping lines has contributed to the hardships of business community.

Speaking at PAJCCI’s stakeholders meeting held in the city, he apprised recent PAJCCI activities aimed at raising the voice of business community, recommending practical solutions and technical input to both governments in improving economic activities.

The unilateral increase in detention & demurrage cost, high security deposit in case of trade with Afghanistan, non-acceptance of insurance guarantee, irregular tariff, demanding return of empty containers and discrimination towards Pakistan & region instead of taking advantage of growing regional trade needs to be looked into on urgent basis.

Faiza Zubair; Secretary General updated on the status of high impact issues and solutions which was submitted to Speaker National Assembly, National Security Advisor, Special Envoy for Afghanistan and Afghan inter-ministerial coordination committee by PAJCCI.

She also provided overview of PAJCCI budget proposal presented to Standing Committee on Commerce in the Senate of Pakistan. Details of meeting with State Bank of Pakistan, visit of Afghan Delegation, efforts in securing E-Form & EIF suspension, increase in PKR trading category items, increase in FIA counters and dedicated counters for Business Visa holders were also shared with the house.

Suleman Chawla; Vice Chairman FPCCI highly appreciated the role of PAJCCI and Zubair Motiwala in furtherance of trade and uplift of socioeconomic conditions of the region.

He said that PAJCCI has become the beacon and role model for other entities operating in such difficult times.

Iftikhar Ahmed; DG Transit Trade informed that a meeting was held with business community of both sides along with shipping lines association to address transit trade issues especially the exorbitant tariff, high security deposit, return of empty containers and charges which are highest in the region. There is no regulatory body to implement measures to control discriminatory policy of shipping lines.

He said that it is not practical to regulate shipping lines however tariff can be regulated.

Qazi Zahid Hussain; Director PAJCCI said that unlicensed freight forwarders are also operating and manipulating the charges. Customs Preventive unit shall regulate at least freight forwarders tariff to put a stop to illegal practices and bring fairness to industry.

The short-term solution of de-stuffing and cross stuffing shall be replaced with long term solution of implementing insurance guarantee instead of security deposit, return of deposit within 7 days, standard tariff in line with region, rationalization of detention and demurrage cost.

He said that Afghan side also needs to make efforts in supporting transit trade to CAR using Afghan route.

Captain Mustafa Kizilbash; GM Pakistan National Shipping Corporation informed about the initiatives PNSC is taking to support business community by also proposing alternative of charter vehicle that has proved to reduce cost of doing business and has expedited the speed of delivery.

Rear Admiral Retd. Syed Hasan Nasir Shah; Chairman Port Qasim Authority provided the overview of services available at Port Qasim like off dock terminal, connectivity with railways by constructing 4 off dock terminals to provide rail and land connectivity with Afghanistan and CARs.

He said that PQ will soon offer cross-stuffing facility and has also extended free days to 14 for Afghan Transit. He advised PAJCCI to share the suggestions and specific requirements of business community in writing, which will be given due consideration by PQA.

Mahvash Tariq Siddiqui; Director PAJCCI remarked that third party payments in pharma trade have never been an issue in case of Yemen where war is still going on the corresponding banks shall not refuse to process payments in case of Afghanistan and same criteria may be adopted.

Zubair Motiwala; Chairman PAJCCI thanked the participants for their active participation and support in resolution of on-going issues, recommendation on improving economic landscape, providing input on ground realties impacting fruitful trading activities and adding their weight to the efforts of PAJCCI.

He said he is fully committed towards the uplift of socio-economic well-being of region and will continue to make all efforts in making the voice of business community heard in all relevant quarters on both sides of border.

He fully supported the joint resolution of the forum to regulate shipping lines and freight forwarders tariff, replacing security deposit with insurance guarantee and assured that issue will be taken up with government.

The meeting was well received by business community including senior members of Federation of Pakistan Chambers of Commerce & Industry (FPCCI) & Karachi Chamber of Commerce & Industry (KCCI). The Karachi meeting was attended by Iftikhar Ahmed; DG Transit Trade, Rear Admiral Retd. Syed Hasan Nasir Shah; Chairman Port Qasim Authority, Captain Mustafa Kizilbash; GM Pakistan National Shipping Corporation, Suleman Chawla; Vice Chairman FPCCI, representatives of logistics & transport companies, business community and all directors of PAJCCI.

Copyright Business Recorder, 2022