Pakistan's seaborne trade has completely ceased with ships starting leaving the country's seaports without carrying exports consignments as goods transporters strike entered the ninth day on Tuesday. Not a single consignment has been exported from Pakistan during the last nine days causing unrecoverable losses to the economy and national exchequer.
Several rounds of negotiations between the government representatives and transporters have failed bringing exports and imports to a complete halt. The suspension of seaborne trade disturbed the Rs 216 billion of imports and exports financial transactions, so far.
"The country's dwindling economy suffers at least rupees 23 billion loss per day because of the transporters strike," chief co-ordinator, All Pakistan Exporters Forum, Muhammad Javed Bilwani said at a joint press conference at the Karachi Press Club, here on Tuesday. He said that all the country's seaports have choked from non-transportations of imported consignments.
"All terminals at Port Qasim and Karachi Port are now operating at a level of 130 percent over its operational capacity that made the terminals' operational activities almost standstill," chairman All Pakistan Shipping Association, Asim A Siddique also confirmed. Shipping lines are forced to divert the vessel from Pakistan ports due to severe congestion, delays and low productivity, he said. "Exporters suffered export order cancelations as ships left the harbors without loading consignments to the world markets," Bilwani said, adding that the strike has also brought the industrial productions to a suspension from running short of inputs that are stuck at ports.
The strike has inflicted a loss of Rs 6.3 billion in terms of exports and Rs 17.4 billion of imports every day, he estimated, saying that "overall the country suffered a loss of Rs 216 billion including Rs 56.7 billion of exports and Rs 157 billion of imports over the last nine days".
He termed the trade scenario in the wake of goods transporters strike as 'alarming', saying that the industries have fired daily-wage workers after suspending production while thinking now to scale down the permanent staff for dwindling finances, as exporters are unable to manage their salaries. "The exporters are also considering going to Supreme Court against the High Court's decision of banning the heavy vehicles movement in the city," Bilwani announced, appealing to the court to review the verdict. "The empty ships that began leaving Pakistan are damaging the country's image, globally," he said.
Bilwani alerted the federal government of more export orders cancellation, saying that the country already faces the historic trade deficit. "The growing trade suspension is going to hurt not only the country's economy but will also bring the exporters and industry to a collapse," he said.
He said that "some 900 industries have stopped production and industrialists have surrendered factories' keys to their associations and will be handed over to the government to run their industries under the circumstances." He also warned the government of expiration of L/C of exporters that will cause an additional financial loss of billions of dollars to the national exchequer.
"Shipping companies suffer huge losses due to severe congestion at the ports due to transport strike. Vessels turn time increased that disturb schedules port charges and chartering cost of the vessel," Asim Siddique said. RICE exporters said that entire rice industry in Sindh has shut down its operation as transport is not available for shipment of commodity. They said that from the last nine days not a single ton of rice has been exported due to transport strike.
On the occasion, Shamim Firpo, president Karachi Chamber of Commerce and Industry, Zubair Motiwala, chairman Council of All Pakistan Textile Association, Irfan Bawani, chairman Pakistan Hosiery Manufacturers and Exporters Association, Zain Basheer, chairman Pakistan Industrial Forum, Ismail Sattar, president Lasbela Chamber of Commerce and Industry, representatives of Rice Exporters Association of Pakistan (REAP), Pakistan Towel Manufacturers Association, Pakistan Readymade Garments Manufacturers and Exporters Association and other exporters and importers were also present on the occasion.