MULTAN: Multan Dry Port is on the verge of collapse due to ongoing severe financial crisis in the country and bearing heavy losses every month. Unnecessary delay in issuance of Form-E to exporters from State Bank of Pakistan is causing severe negative impact on the swift clearance of export shipments and due to continuous delay in issuance of Form-E large number of local exporters shifted to Karachi for the clearance of Shipment instead of Multan Dry Port. The effects of political and economic instability in the country have practically deserted Multan Dry Port which is the only clearing station in South Punjab. Multan Dry Port is facing severe financial crisis due to current economic situation.
It was stated by General Manager Multan Port Khawaja Hassan Wadood during an exclusive interview with Customs Today in his office.
He said that local industrialists, traders and exporters have serious concerns about the current trade policies of the country and whole nation is suffering due to ill-economic policies.
Lack of a comprehensive economic policy requires to promote exports from the government and ongoing inflation in the country has created crisis situation for the manufacturers. Even though the wave has made the manufacturing industry miserable, exporters are suffering from financial crisis due to the increase in their business costs and the government’s failure to stabilize the value of the dollar is also major reason behind the declining exports.
Due to continuous increase in the value of dollars in International markets business conditions have become miserable for the manufacturers, exporters are unable to procure raw materials due to shortage of dollars in the country.
Government has imposed 0.9% Punjab Revenue Authority tax on the net value of import shipment is also causing hindrance in exports because exporters unable to meet the production cost due to record inflation. Multan Dry Port Trust is trying to provide best clearing facilities to its importers and exporters but there is dire need of government support and improving things without solving existing problems. Despite the clear instructions from the government, the State Bank is not issuing the Form-E to the exporters for several days and exporters are now clearing their shipments from Karachi due to unnecessary delay from State bank of Pakistan.
Multan Dry Port only clearing station for shipments in South Punjab, is currently running at a heavy loss due to the prevailing economic situation in the country and is unable to meet its operational costs as only 6 import containers were cleared at the dry port in the entire month of August.
While only 19 import containers were brought for clearance in the month of July, the government should ensure the provision of a favorable business environment in the country so that it can bring foreign exchange to the country by exporting more local manufacturing goods and play its positive role in improving the country’s economy by removing export hurdles.
Multan Dry Port cleared mostly Yarn, cloth, fabric, garments, shoes, khussa, decoration antiques, blue pottery and other goods exported to other countries from Multan Dry Port. Local exporters facing serious issues at Multan dry port clearance matters from the government after shifting it to Faisalabad Customs instead of Multan Customs. Reforms policy is framed without taking stakeholders on board and realizing actual ground realities.
Khawaja Hassan Wadood demanded from the government to intervene and bound the local industrialists for the clearance of their export shipments from their nearest clearing station. Multan Dry Port is providing swift clearance facilities in Multan and ensuring best services to importers and exporters. Multan Dry Port is suffering from severe financial crisis after disregarding local manufacturers from State bank of Pakistan and he appealed from local exporters to come forward and overcome current financial crisis as Multan Dry Port needs additional incentives from the government on emergency basis.
