MULTAN: Multan Dry Port, the only clearance station in Southern Punjab, is grappling with a severe financial crisis due to a sharp decline in clearance shipments over recent months.
The General Manager of Multan Dry Port, Khwaja Hassan Wadood, revealed in an exclusive interview with Customs Today that recent government policies, particularly the substantial increase in electricity prices, have forced local manufacturing industries to shut down. The elevated energy tariffs have rendered production costs unsustainable, pushing many industrialists out of competition.
Wadood highlighted the direct impact of this situation on importers and exporters, who find themselves with nothing to ship due to the inactivity of local industries. The government’s hike in tax rates has exacerbated the problem, adding financial strain to already struggling businesses and further hindering their operations.
Southern Punjab’s industrialists, when invited to clear their consignments at Multan Dry Port, often question whether they can continue their business amid the high taxes and prevailing uncertainty. The lack of political stability has had a detrimental effect on the country’s economy, placing significant financial pressure on business owners.
According to Wadood, the current economic conditions have led to an increased reliance on imported lint cotton, as local cotton is burdened with an 18% General Sales Tax. Additionally, mill owners face taxes amounting to approximately 3.6 million rupees when importing 100 bales of cotton. This heavy tax burden has contributed to a slowdown in business activity and a decline in clearance consignments at Multan Dry Port.
In response to these challenges, the Multan Dry Port Trust has implemented new strategies and is working on infrastructure upgrades despite the ongoing economic slowdown. The Trust has also closed the Sadiqabad Dry Terminal and is now concentrating its efforts on improving operations at Multan Dry Port. Initiatives are underway to attract exporters and importers to clear their consignments at Multan, with hopes for a positive shift in trends due to these marketing efforts.
Wadood also noted that despite significant inflation over the past decade, the Multan Dry Port Trust has refrained from increasing its clearance charges. However, an adjustment has become necessary under the current economic conditions. Relief in electricity prices is deemed essential for the revival of industries and subsequent improvement in port activities. While the situation at Faisalabad and other dry ports is reportedly worse, there is optimism that with ongoing improvements, trade activities at Multan Dry Port will soon experience a resurgence.
