FCCI for exempting export goods from Road Safety Act

04 Apr, 2006

At a time when the Pakistani exports are expected to exceed 18 billion dollars, the National Highway Authority (NHA) has allegedly not only started confiscating export goods, but is also imposing heavy fines on the transporters, carrying export containers.
These views were expressed by the exporters, industrialists, transporters, dry port trustees and traders in Faisalabad Chamber of Commerce and Industry (FCCI), when the National Highway Authority (NHA) Chairman, Major General Farrukh Javed, was discussing the issues, facing the local business community.
FCCI President Mian Muhammad Hanif demanded of the government that the export consignments should be exempted from Road Safety Act so that the pace of the national development could not suffer.
He also highlighted the importance of roads network, and said that Faisalabad Industrial Estate Development and Management Company had decided to set up an industrial city along M-3 to fully exploit the potentials of this motorway.
The FCCI chief said before determining the axle load limit of the vehicles and imposition of fines, ranging from Rs 1,000 to Rs 5,000 on excess load, the exports from Pakistan would badly hamper and inflict a colossal financial loss to the exporters, besides considerable decline in the exports.
He said the shipping lines had allowed the payload capacity of 14 to 16 tonnes for a 20-foot container and 26 to 30 tonnes for 40-foot container, hence the National Highway Authority should also follow it and immediately withdraw its decision, especially for the export cargo load.
He suggested that the NHA should grant at least six-month period to the transporters to modify the axles of their vehicles according to specification given by the National Highway Authority.
Mian Hanif mentioned that for the first time in the history of the country, the present government had provided numerous facilities, concessions and motivations, which helped Pakistan to cross the target of 20 billion dollars.
He mentioned that now when the last quarter of the 2005-06 financial year had started, the process of stopping the export consignments had also begun, which was yielding negative impact over the national economy as well as export struggle of the Prime Minister of Pakistan.
During the discussion, a request was put forth by Faisalabad Dry Port Trust Chairman Chaudhry Muhammad Siddique before the NHA Chairman through the FDPT trustees, which stated that with the implementation of axle load management policy under the Road Safety Act, the upcountry exporters were being affected very badly.
FDPT Accounts/Finance Committee Chairman Sheikh Ashfaq Ahmad gave a very clear indication that if the exports were stopped, then not only the industry of Punjab and NWFP would be affected, but there would also be a great apprehension of unemployment.
He said the Prime Minister's instructions in this regard were very clear that no decision about exports should be made without the consultation of concerned associations and chambers, but in spite of all this, the NHA had started taking actions and thus the national exports were being miserably damaged.
Ashfaq also supported the stand of the FCCI President, and demanded holding of a roundtable conference of the Ministry of Communication, NHA, upcountry dry ports and associations of exporters and transporters to decide the crucial issue of excess load.
The representative of Iqbal Rice Mills, Chiniot, said that on the checkpoint, 300 bags of rice were confiscated and a heavy fine was imposed, although the rice consignment was packed in accordance with the order L/C placed by the foreign buyers.
"If anybody demands 40-foot container, it is the responsibility of exporters to provide the rice according to his wish. If we tell the buyers about the new restriction of the country law, then they will purchase the rice from India," he added.
The representatives of Pakistan Hosiery Manufacturers Association (North Zone) stated that due to some restrictions and unfavourable circumstances, the textile exporters were trying to find the place in Bangladesh.
They said that it was a hard fact that despite the heavy cost of production owing to exorbitant electricity and gas rates and levy of various provincial and Federal taxes, the exporters of the country were still competing in the world market over a little margin of profit and thus contributing a lot to the national exchequer.
"It is, therefore, imperative that we should not create further trouble for our exports and the industry," they added.
FCCI Transporters Action Committee Chairman Chaudhry Muhammad Saleem Akhtar said: "If we (transporters) do not care for the benefit and interest of the exporters, then the matter would not go on smoothly."
Clearing Agents Association Chairman Muhammad Boota said that if Pakistan was at No 2 in the field of development and progress after China, its main reason was the increase in exports, which would be doubled after 24 years.
He appealed to the government that the favourable circumstances should not be converted into unfavourable circumstances.
Concluding, the NHA Chairman said that he himself was not competent to make any decision over this hot issue, but he could only make recommendations.
About the problems of overloading, he defended the steps taken under the Road Safety Act, but supported the duty-free import of vehicles, particularly trucks and trailers to replace the existing depleted fleets.
He agreed that immediate measures to check overloading would have adverse impacts on exports and imports, and assured the participants that he would forward the FCCI recommendations to the Ministry of Communication for necessary remedial measures.
He, however, said that to save the roads from damages and destruction, it was also an important national obligation of NHA.
Regional Chairman of All Pakistan Textile Processing Mills Association Shabbir Ahmad, FCCI Fair & Exhibition Committee Chairman Shahid Ahmad Sheikh, Chairman of FCCI Standing Committee on WTO Muhammad Shaheen Tubbassam, Senior Vice-President of FCCI Rana Zafar Ahmad Khan, President of Faisalabad Traders of Small Industrial Estate Sheikh Muhammad Saleem Sana, Muzzamal Sultan, Subho Saddiq Butt and many other took part in the discussion.

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