PQA decides to reduce charges by 50pc for exporters

ISLAMABAD: In a move to facilitate exporters for increasing exports it has been decided that Port Qasim Authority (PQA) would reduce wet and dry port charges by 50 per cent.

According to officials, the decision was made during a meeting of the Cabinet Committee on Transportation and Logistics (CCoTL) which was held under the Chairmanship of the Federal Minister for Maritime Affairs Ali Zaidi in Islamabad on Wednesday.

The discount is the realization of exporters’ long-standing demand from the government in the backdrop of increased production costs due to high fuel and dollar rates.

During the meeting, the Karachi Port Trust (KPT) was also asked to examine the possibility of reduction of Port Charges as done by the PQA and put up a proposal before the CCoTL through the Ministry of Maritime Affairs for consideration.

The CCoTL further decided that PQA should seek a legal opinion regarding exclusivity rights of coal handling by the PIBT and communicate to the Ministry of Maritime Affairs positively within one week for submission before the CCoTL. Secretary, Ministry of Maritime Affairs was directed to convey the decision of CCoTL to the PQA immediately.

A unanimous decision was taken to form a committee comprising the Minister for Railways as convenor and SAPM on CPEC to conduct an inquiry of granting exclusivity right of coal handling to PIBT. The Committee will look into the transparency and legality of such contracts and submit a report to the CCoTL within two weeks. The committee may also co-opt any other member if required.

Directions were also issued to KPT to seek legal opinion on the Supreme Court Judgement relating to the stoppage of Coal handling. KPT was directed to explore the possibility to develop coal handling facilities on international standards.

Last month in a letter to Federal Minister for Maritime Affairs, Syed All Haider Zaidi, the All-Pakistan Cement Manufacturers Association had complained about congestion on ports. With reference to the coal vessel line-up at port, it was informed that reliance on the only exclusive terminal with just one berth for imported coal handling was insufficient to meet the current coal demand for industries. Due to the limited capacity of this terminal, severe congestion at the port was causing delays of up to 13 days in offloading of imported coal.

As per the letter Pakistan relies on imported coal for not only cement manufacturing but also for several other industries including textile. Besides the high coal prices in the global market, the current inefficient port infrastructure and its weak logistics chain was not only a threat to industries but also causing inflation in the country.

Meanwhile, during the meeting of the committee on Wednesday, Aviation Division was also asked to urgently conduct a comparative study of air freight charges against sea freight and submit it before the CcoTL for consideration.

The CCoTL unanimously directed the Petroleum Division to place the matter of Deemed Duty before the CCoE in its next meeting with the yearly breakup of duty collected by each refinery and its utilization since its inception.  CCoTL unanimously recommended that the Petroleum Division must carry out an audit of the Deemed Duty collected by Petroleum Refineries for their upgradation and utilisation.

The meeting was attended by the Minister for Railways, the Minister for Aviation, the Advisor to PM on Commerce, SAPM on CPEC. Representatives of regulatory authorities and senior officials of Ministries also participated in the meeting.