— Banks stop remittances to the shipping companies which has created serious issues for Pakistan’s foreign trade
ISLAMABAD: The shortage of dollars and subsequent reluctance of banks regarding making payments are not only causing a mess for importers but the situation is also going to force the foreign shipping lines to stop services for Pakistan.
Through a letter sent to Minister of Finance Senator Ishaq Dar, the Pakistan Ship’s Agents Association (PSAA) has warned that banks have stopped the remittances to the shipping companies, which could create serious issues for Pakistan’s foreign trade.
Earlier in a number of letters sent to the Ministry of Maritime Affairs, Ministry of Commerce and State Bank of Pakistan, the association has informed that the foreign shipping lines are considering stopping services for Pakistan, stopping the inflow and outflow of all goods from the country, as their payments have been stopped by the banks.
It may be mentioned here that almost all of the international logistics of the country is catered through sea trade and handled by the PSAA.
“If international trade is stopped the economic situation will worsen,” said the PSAA, adding that the foreign shipping lines are already considering winding up their services in Pakistan due to reduced cargo volumes.
Formed in 1976 PSAA is the largest and oldest trade association representing shipping lines, and its members handle all types of cargo i.e. containerized cargo, liquid cargo and dry bulk cargo at Pakistan seaports.
Through the letter sent by Abdul Rauf, chairman PSAA the association has requested that the concerned ministries and institutions intervene in order to ensure continuity in Pakistan’s seaborne trade by allowing outward remittance of surplus freight amounts to respective foreign shipping lines forthwith.
“Due to discontinuation of outward remittance of surplus freight amounts to respective foreign shipping lines, was hampering Pakistan’s seaborne trade which is heavily dependent on foreign shipping lines,” the letter added.
It added that judging from the current state of affairs, where the shipping sector is badly hit by economic ups and downs, any further delays in remitting their legitimate dues will constrain Pakistani foreign trade.
The main role of ship agents include booking ships in and out of the port, and arranging the berthing of the ships, submitting information of the local and foreign crew and any passengers to the local immigration authorities, completion of all relevant vessel clearance documentation and other services required for loading and unloading of the cargo.
Meanwhile in a statement the PSAA says that members of the association are deeply perturbed due to the discontinuation of outward remittance of surplus freight amounts to respective foreign shipping lines which will badly hamper Pakistan’s seaborne trade which is heavily dependent on foreign shipping lines. Judging from the current state of affairs, where the shipping sector is badly hit by economic ups and downs, any further delays in remitting their legitimate dues will constrain Pakistani foreign trade.
