MULTAN: South Punjab importers and exporters shifted from Multan Dry Port to Karachi due to dual taxation on the clearance of their shipments. After shifting of clearance to Karachi Multan Dry Port is on the verge of collapse due to unavailability of clearance shipment in ongoing severe financial crisis in the country and bearing heavy losses every month.
Multan Dry Port Trust is facing multiple issues in clearance of import and export shipments due to current national economic situation.
An exporter informed Customs Today that we are facing multiple issues at the time of clearance at Multan Dry Port including unnecessary delay in issuance of form-E to exporters from State Bank of Pakistan and it is also causing severe negative impact on the swift clearance of export shipments.
Due to continuous delay in issuance of E- form 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.
There are several industrialists and clients shipments are confronting issues at the time of opening of (Letter of Credit) LCs from bank at the time of import. Multan Dry Port cleared only 55 import containers worth Rs.108761.576 million during first four months of the ongoing economic year 2023-24.As many as 200 various import shipments including M/s Zainab Textiles, M/s Shangrilla Pvt.Ltd ,SM Foods and others are facing pendency of clearance and hurdles from government in provision of dollars against the LCs for the payment.
Local industrialists, traders and exporters have shown serious concerns about the current trade policies of the country and whole nation is suffering due to ill-economic policies. Due to continuous increase in the value of dollars in International markets and 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.
South Punjab exporters are also 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.
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 November.
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. Reforms policy is framed without taking stakeholders on board and realizing actual ground realities .
Local exporters and importers have appealed from Government s to come forward and overcome current financial crisis as Multan Dry Port needs additional incentives from the government on emergency basis.
