Federal Board of Revenue (FBR) officials informed the Standing Committee on Commerce that port congestion has resulted in demurrage losses between Rs. 80-100 million. Around 200 containers remain stranded despite most having cleared full duties. Delays persist due to pending final notifications under the Export Facilitation Scheme, prompting committee members to demand urgent resolutions to prevent further financial damage.
Committee Proposes Bank Guarantees for Container Release
To mitigate losses, committee members urged authorities to release stranded containers against bank guarantees. They criticized bureaucratic delays, emphasizing that swift action is necessary to support traders. The chairman directed officials to explore this option, highlighting that prolonged port congestion harms both businesses and the national economy. Immediate intervention is needed to resolve the crisis and restore smooth trade operations.
Commerce Ministry Reviews Trade Organization Elections
The committee reviewed a summary concerning trade organization elections. The Commerce Secretary stated that the ministry had submitted its opinion, and the summary now awaits Law Ministry clearance. Once approved, it will proceed to the federal cabinet for final approval. The delay has raised concerns among stakeholders, who seek clarity on election timelines to ensure smooth transitions in trade bodies.
Proposal to Extend Tenure of Trade Organizations
Committee members proposed extending the tenure of trade organizations to two years, while the chairman suggested a one-year extension for the Federation. If no approval is granted, elections must proceed under existing laws. The discussions reflect efforts to balance regulatory compliance with operational continuity, ensuring trade bodies function effectively without administrative disruptions.
Also Read: 20M Sikhs Stand with Pakistan Against Indian Aggression
Delays in Export Facilitation Scheme Notifications
A committee member noted that despite a draft SRO for the iron and steel sector being issued before Eid, the final notification remains pending. Bureaucratic hurdles continue to hinder implementation, frustrating exporters. Another member highlighted that key recommendations from the Prime Minister’s committee meetings have not been enforced, delaying sectoral reforms and export growth.
FBR Flags Misuse of Import Exemptions
FBR officials raised concerns over iron and steel importers exploiting exemptions without meeting the mandatory 10% value addition requirement. This misuse has undermined policy objectives, prompting calls for stricter enforcement. The committee stressed the need for compliance checks to ensure fair trade practices and protect domestic industry interests.
Committee Directs Swift Resolution of Trade Issues
The committee chairman directed authorities to expedite solutions, including releasing containers against bank guarantees. He emphasized that delays harm economic stability and trader confidence. The meeting concluded with a call for inter-ministerial coordination to resolve pending notifications and streamline trade processes, ensuring smoother operations at ports and beyond.
Conclusion
With demurrage losses mounting, stakeholders demand immediate action to clear port congestion and finalize pending SROs. The committee’s recommendations aim to ease financial burdens on traders while ensuring regulatory compliance. Swift implementation of these measures is crucial to restoring trade efficiency and safeguarding Pakistan’s economic interests.
