Govt to slash export cargo costs by 50%


ISLAMABAD:

The Pakistan Tehreek-e-Insaf (PTI) authorities is ready to cut back port costs for export cargoes by 50% in a bid to spice up exports.

The Port Qasim Authority (PQA) board has already permitted a discount of fifty% in port costs for export cargoes to assist improve export volumes.

Sources informed The Categorical Tribune that the maritime affairs ministry had tabled a proposal on this regard earlier than the Cupboard Committee on Transport and Logistics (CCoTL). The cupboard physique has permitted the proposal.

In a gathering held final week, the Ministry of Maritime Affairs briefed the cupboard physique in regards to the proposal of lowering port costs for export cargoes by 50%.

It was knowledgeable that with the intention to facilitate the exporters and improve the quantum of exports, the PQA board in its assembly held on July 16, 2021 had handed a decision and permitted the proposal of lowering port costs (moist/dry) for export cargoes for a interval of 1 12 months.

It permitted a discount of fifty% in port costs (moist/dry, ie wharfage, port dues and pilotage) for export cargoes at marginal wharf berth No 1 and a couple of, Fauji Akber Portia Terminal, Fotco Terminal and PIBT Terminal.

For containerised cargo dealt with at DP World (QICT), the wharfage can also be diminished by 50% on containers carrying export and transshipment cargo (however it’s not relevant to empty containers).

The Ministry of Maritime Affairs requested the CCoTL for endorsement of the board decision as a requirement for approval of the federal authorities beneath Part 13(4) of the Port Qasim Authority Act 1973.

The cupboard physique mentioned and unanimously supported the proposal. The minister for railways said that the Ministry of Maritime Affairs ought to be sure that the aid could also be handed on to the exporters in order that the good thing about discount could also be achieved in true letter and spirit.

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The minister for aviation said that the PQA board could look at the opportunity of giving the same profit to the importers as properly. It’ll assist in lowering costs within the nation.

Whereas supporting the proposal, Adviser to Prime Minister on Commerce and Funding Abdul Razak Dawood said that it was a commendable initiative for the promotion of exports.

He added that logistics and transportation needs to be considered in a holistic method with the intention to develop linkages to make the entire course of helpful for enhance in commerce with different nations, particularly the Central Asian states.

The CCoTL thought-about a abstract relating to the discount in port costs and permitted the proposal.

It additionally determined that the PQA ought to search authorized opinion on exclusivity rights for coal dealing with by the PIBT and talk it to the Ministry of Maritime Affairs positively inside one week for submission to the CCoTL.

It agreed that the Ministry of Maritime Affairs secretary will convey the directive to the PQA.

It determined that Karachi Port Belief (KPT) ought to search authorized opinion on the Supreme Courtroom judgement regarding the halt to coal dealing with. It’ll submit the modus operandi for managing coal dealing with via its terminal.

It might additionally look at the opportunity of submitting a assessment petition in opposition to the order after creating correct SOPs. A report on this regard shall be submitted to the Ministry of Maritime Affairs inside two weeks, for subsequent submission of a abstract for CCoTL’s consideration.

It additionally determined that KPT ought to look at the opportunity of discount in port costs as was completed by the PQA and put a proposal earlier than the CCoTL via the Ministry of Maritime Affairs for consideration.

Printed in The Categorical Tribune, September 8th, 2021.

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