Major Setback for Pakistan’s Economy; Foreign Shipping Companies Might Cease Operations - Capital TV

June 3, 2023


Major Setback for Pakistan’s Economy; Foreign Shipping Companies Might Cease Operations

Mahnoor Tariq

On Jan 20, ship agents informed the government that all export shipments may stop. This is because foreign shipping companies are considering ceasing their operations after banks withdrew payment of freight charges. They were told the reason was ‘lack of available dollars.’

Follow More: Rupee Declines by 0.10%, US-Dollar Reached Rs229

Apart from bordering nations, almost all of Pakistan’s international logistics are handled by sea. The chairman of Pakistan Ship’s Agents Association (PSAA), Abdul Rauf, warned Finance Minister Ishaq Dar. He wrote a letter that any disruption could impact international trade.

The foreign shipping lines are already thinking about ending their services in Pakistan. This is due to decreased cargo quantities. PSAA added that if international trade is terminated, the economic situation will get worse.

However, the dilemma is related to the export shipments. All outbound trade from Pakistan is container-based. The nation does not export any liquid or grain. Through its 12 vessels, the government-owned Pakistan National Shipping Company only handles crude oil and other petroleum fuel imports. The approximate $5 billion yearly freight bill for Pakistan is paid by foreign corporations in foreign currencies. This is what is termed as the “greenback.”

Related Stories: Shortfall of Greenback & Harsh Import Policies, Traders Lashed Out SBP

The shipping industry was already suffering as a result of economic ups and downs, according to ship agents. Any further delays in paying lawful debts will limit Pakistan’s international trade.

icon-facebook icon-twitter icon-whatsapp

Leave a Reply

Your email address will not be published. Required fields are marked *