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  • Pakistan lifts ban on import of cars, phones, luxury items

    Pakistan lifts ban on import of cars, phones, luxury items

    ISLAMABAD: Pakistan on Friday lifted ban on all import of luxury and non-essential items amid serious foreign exchange crisis.

    The ministry of commerce issued SRO 1562(I)/2022 for lifting the ban on luxury and non-essential items, including motor vehicles, mobile phones and home appliances.

    The government on May 19, 2022 through a circular No. 598 (I)/2022 imposed the complete ban on import of such items in the wake of serious balance of payment crisis and to prevent fall in rupee value.

    Despite the ban, the rupee fell to the historic low of Rs239.94 against the dollar on July 28, 2022.

    It is worth mentioning that the foreign exchange reserves were drastically decreased despite imposition of ban on imported luxury items.

    READ MORE: Pakistan decides to lift ban on imported goods

    Pakistan’s foreign exchange reserves have increased by $52 million by week ended August 12, 2022. The foreign exchange reserves of the country have recorded at $13.613 billion by week ended August 12, 2022 as compared with $13.561 billion a week ago i.e. August 05, 2022.

    The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $13.615 billion.

    The official foreign exchange reserves of the State Bank witnessed an increase of $67 million to $7.897 billion by week ended August 12, 2022 as compared with $7.83 billion a week ago.

    READ MORE: 15% surcharge imposed for clearance of banned items

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $12.249 billion.

    The country has taken the decision in order to fulfil the condition of International Monetary Fund (IMF) to get loans.

    Addressing a press conference a day earlier alongside members of the government’s economic team, Miftah Ismail said that the import ban on non-luxury items was placed in line with the IMF’s demands.

    Miftah said that after much back-and-forth, the IMF has finally announced that its board meeting will take place on August 29 — for considering Pakistan’s request for the release of the $1.17 billion tranche.

    The finance minister noted that the government has also fulfilled all the pre-requisites of the lender, while the funding gap of $4 billion has also been met — after friendly countries agreed to help Pakistan financially.

    He said that after the import ban, it became easier for the government to import necessary commodities, which were essential for the masses. “When we have limited dollars and we have to feed a huge population, our priority automatically becomes [the nation]. We had to choose between importing cars and wheat — that’s why we imposed a ban.”

    READ MORE: Pakistan allows release of banned items stuck up at ports

    The finance minister said the government was scrapping the import ban as it was an international requirement, but noted that the regulatory duty that will be imposed on the non-essential imported items will be three times higher than the current levels.

  • SBP assures allowing stuck up containers of banned import

    SBP assures allowing stuck up containers of banned import

    KARACHI: The State Bank of Pakistan (SBP) has assured the business community of allowing to release all the containers with consignments of banned imported goods.

    In a statement issued on Monday, President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Idrees said that the State Bank of Pakistan (SBP) has agreed to release all the containers which arrived at the Ports until July 5, 2022 but remained stuck up awaiting approval from SBP.

    READ MORE: Pakistan decides to lift ban on imported goods

    While referring to a message received from Deputy Governor SBP Dr. Inayat Hussain, President KCCI said that Deputy Governor SBP has assured that all the cases wherein the Bill of Lading is prior to issuance of SBP’s instructions on July 5, 2022 which have been submitted by KCCI will be released within the next 2 to 3 days whereas any other pending request for release of similar stuck-up consignment may also be referred to SBP for timely release.

    READ MORE: 15% surcharge imposed for clearance of banned items

    Muhammad Idrees said that thanks to the untiring efforts made the leadership of Karachi Chamber, particularly Chairman Businessmen Group Zubair Motiwala who constantly remained in touch with Finance Minister Miftah Ismail and kept convincing him to resolve this matter, relief has finally been provided to perturbed importers which the business community warmly welcomes.

    READ MORE: Pakistan allows release of banned items stuck up at ports

    He thanked Finance Minister Miftah Ismail for taking keen interest in all the issues being raised by KCCI and issuing prompt directives for resolving the same on top priority which has help in restoring the confidence of the entire business and industrial community.

    “This particular step to release stuck up containers along with some other pro-business measures and the government seriousness towards resolving the pressing issues suffered by the economy would ensure that the wheels of the industry keep on spinning without any interruption,” he added.

    READ MORE: KCCI demands release of stuck up containers

  • Pakistan decides to lift ban on imported goods

    Pakistan decides to lift ban on imported goods

    ISLAMABAD: Pakistan on Thursday decided to lift the ban imposed on imported goods except for Completely Built Unit (CBU) of motor vehicles, mobile phones and home appliances.

    A review meeting was held to review the ban after two months owing to serious concerns raised by major trading partners on the imposition of ban and considering the fact that the ban has impacted supply chains and domestic retail industry.

    READ MORE: 15% surcharge imposed for clearance of banned items

    In the light of fact that imports substantially reduced due to consistent efforts of the government, the Economic Coordination Committee of the Cabinet (ECC) decided to lift the ban on imported goods except for Auto CBU, Mobile CBU and Home Appliances CBU.

    The committee also decided that all held up consignments (except items which still remain in banned category) which arrived at the ports after July 01, 2022 may be cleared subject to payment of 25 per cent surcharge.

    Ministry of Commerce submitted a summary on prohibition/complete quantitative restrictions on import of non-essential and luxury items.

    It was submitted that in order to curtail the rising current account deficit (CAD), ban on the import of about 33 classes/categories of goods was imposed with the approval of the Cabinet.

    READ MORE: Pakistan allows release of banned items stuck up at ports

    Due to the decision, the overall imports of the banned items have shrunk by over 69 per cent i.e. from $ 399.4 million to $ 123.9 million.

    Recently, the ministry of commerce had imposed surcharge up to 15 per cent for clearance of consignments stuck up at ports and were banned for saving foreign exchange.

    The ministry of commerce issued an office memorandum dated July 22, 2022 pursuance to the federal cabinet decision to release the consignments of prohibited items.

    The government through SRO 598(I)/2022 dated May 19, 2022 imposed a complete ban on the import of luxury and non-essential items.

    However, a large number of containers were stuck up at ports that were arrived after the imposition of ban.

    READ MORE: KCCI demands release of stuck up containers

    The Federal Cabinet on July 15, 2022 allowed the release of all those consignments/shipment which had been imported in violation of SRO 598(I)/2022 dated May 19, 2022 and were pending customs clearance.

    However, this clearance was subject to condition that consignments had landed at any port including sea, air or dry port of the country on or before June 30, 2022 subject to payment of surcharge to be imposed on the cost and freight value of goods.

    According to the ministry of commerce, five per cent surcharge has been imposed on the shipment which had arrived within two weeks of issuance of the SRO 598(I)/2022.

    Further, 15 per cent surcharge has been imposed on shipment which had arrived after two weeks of issuance of SRO 598(I)/2022 till June 30, 2022.

    Due to the ban about one thousand containers piled up and resulted in choking the ports. The stakeholders requested the government to allow the release of those consignments as many of the consignments were shipped before May 19, 2022 but lander after the date.

    READ MORE: Committee recommends lifting import ban on luxury items

    Previously, the Economic Coordination Committee (ECC) of the Cabinet in its meeting held on Tuesday July 5, 2022 allowed one-time release of those consignments carrying banned items and reached on or before June 30, 2022.

    Ministry of Commerce submitted a summary to seek permission for one time release of those consignments of items banned on May 19, 2022 which have reached Pakistan or would reach or their payments.

    In order to resolve the hardship cases, the ECC granted one-time special permission for release of consignments stuck at the ports due to contravention framed under SRO 598(I)/2022 dated May 19, 2022, only for those consignments which have landed at ports or airports in Pakistan on or before June 30, 2022.

  • 15% surcharge imposed for clearance of banned items

    15% surcharge imposed for clearance of banned items

    ISLAMABAD: Pakistan has imposed surcharge up to 15 per cent for clearance of consignments stuck up at ports and were banned for saving foreign exchange.

    The ministry of commerce issued an office memorandum dated July 22, 2022 pursuance to the federal cabinet decision to release the consignments of prohibited items.

    READ MORE: Pakistan allows release of banned items stuck up at ports

    The government through SRO 598(I)/2022 dated May 19, 2022 imposed a complete ban on the import of luxury and non-essential items.

    However, a large number of containers were stuck up at ports that were arrived after the imposition of ban.

    The Federal Cabinet on July 15, 2022 allowed the release of all those consignments/shipment which had been imported in violation of SRO 598(I)/2022 dated May 19, 2022 and were pending customs clearance.

    READ MORE: KCCI demands release of stuck up containers

    However, this clearance was subject to condition that consignments had landed at any port including sea, air or dry port of the country on or before June 30, 2022 subject to payment of surcharge to be imposed on the cost and freight value of goods.

    According to the ministry of commerce, five per cent surcharge has been imposed on the shipment which had arrived within two weeks of issuance of the SRO 598(I)/2022.

    Further, 15 per cent surcharge has been imposed on shipment which had arrived after two weeks of issuance of SRO 598(I)/2022 till June 30, 2022.

    Due to the ban about one thousand containers piled up and resulted in choking the ports. The stakeholders requested the government to allow the release of those consignments as many of the consignments were shipped before May 19, 2022 but lander after the date.

    READ MORE: Committee recommends lifting import ban on luxury items

    Previously, the Economic Coordination Committee (ECC) of the Cabinet in its meeting held on Tuesday July 5, 2022 allowed one-time release of those consignments carrying banned items and reached on or before June 30, 2022.

    Ministry of Commerce submitted a summary to seek permission for one time release of those consignments of items banned on May 19, 2022 which have reached Pakistan or would reach or their payments.

    In order to resolve the hardship cases, the ECC granted one-time special permission for release of consignments stuck at the ports due to contravention framed under SRO 598(I)/2022 dated May 19, 2022, only for those consignments which have landed at ports or airports in Pakistan on or before June 30, 2022.

    READ MORE: Raw materials excluded from import banned items list

  • Pakistan allows release of banned items stuck up at ports

    Pakistan allows release of banned items stuck up at ports

    ISLAMABAD: Pakistan Tuesday allowed one-time release of consignment carrying imported goods that were banned by the government on May 19, 2022 and stuck up at ports.

    The country through SRO 598(I)/2022 imposed a ban on import of luxury and non-essential items in order to discourage outflow of dollars and support balance of payment.

    Due to the ban about one thousand containers piled up and resulted in choking the ports. The stakeholders requested the government to allow the release of those consignments as many of the consignments were shipped before May 19, 2022 but lander after the date.

    READ MORE: SBP makes permission mandatory for motor car import

    In this regard the Economic Coordination Committee (ECC) of the Cabinet in its meeting held on Tuesday July 5, 2022 allowed one-time release of those consignments carrying banned items and reached on or before June 30, 2022.

    Ministry of Commerce submitted a summary to seek permission for one time release of those consignments of items banned on May 19, 2022 which have reached Pakistan or would reach or their payments.

    In order to resolve the hardship cases, the ECC granted one-time special permission for release of consignments stuck at the ports due to contravention framed under SRO 598(I)/2022 dated May 19, 2022, only for those consignments which have landed at ports or airports in Pakistan on or before June 30, 2022.

    READ MORE: Pakistan’s import bill records over $80 bn in 2021/2022

    Ministry of Commerce presented another summary on suspension of import conditions contained in import policy order 2022 with regard to import of timber/wood.

    In view of hardship case of timber importers as the consignments were supplied against contracts months ago and the shipments have already arrived, the ECC decided that date of implementation of Import Policy Order 2022 regarding import of timber and wood falling under HS Codes 4401 to 4409 may be suspended till August 31, 2022 i-e for the bills of Lading issued till August 31, 2022.

    The ECC also approved another summary of Ministry of Commerce to amend paragraph 3(1) of the Import policy Order 2022 to allow import of goods of Afghan origin against Pak Rupee and without the requirement of Electronic Import Form (EIF) for a period of one year, subject to the condition that Afghan exporters will provide a Certificate of Origin issued by Afghan Customs proving that the goods have originated from Afghanistan.

    Federal Minister for Finance and Revenue Miftah Ismail presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division.

    READ MORE: CMOs worry over power outages, 100% cash margin on imports

    Federal Minister for Planning, Development and Special Initiatives Mr. Ahsan Iqbal, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Minister of State for Petroleum Division Musadik Masood Malik, Federal Secretaries and senior officers attended the meeting.

    Ministry of National Food Security and Research submitted a summary on urgent advice relating to award of second international wheat tender 2022 opened on 1st July, 2022 for 500,000 MT.

    The ECC considering the lower trend of wheat in the international market approved the lowest bid offer of M/s Cargill Int. PTE /Cargill Agro Foods Pakistan @ US$ 439.40/MT for 110,000 MT +/- 5% MOLSO to the extent of 500,000 MT.

    Ministry of National Food Security & Research submitted a summary on WPF operation- purchase/ reservation of 120,000 metric tons of wheat for Afghanistan in the year 2022-23.

    In view of the situation in Afghanistan and on humanitarian ground, the ECC approved the request of the WFP for purchase/ reservation of 120,000 MT of wheat from the imported wheat stock of PASSCO on the latest import price.

    The amount of supplied wheat along with cost and incidentals would be charged in US dollars. The wheat will be locally grinded into wheat flour and will be supplied to Afghanistan by WFP, subject to relaxation of ban on the export of flour to the extent of the instant proposal of 120,000 MT of wheat.

    READ MORE: KCCI demands release of stuck up containers

    Ministry of National Food Security & Research presented another summary on the declaration of “National Disease Emergency” on account of Emergence of Lumpy Skin disease in Pakistan. The ECC after detailed discussion directed Ministry of National Food Security & Research to prepare a cost sharing plan after convening a meeting with concerned provincial secretaries and NDMA.

    Ministry of Industries and Production submitted a summary on continuation of PM’s relief package, 2020, Sasta Atta initiative for KPK & expansion of Utility Stores network across Pakistan.

    The ECC decided to continue subsidy on five essential commodities with direction to M/o I & P to work out feasible proposal on subsidy programme keeping in mind the financial implications.

    The ECC also approved a summary submitted by Ministry of Information Technology and Telecommunication on constitution of Auction Advisory Committee to oversee spectrum auction(s) for next generation mobile services (NGMS) in Pakistan.

    The Committee will be headed by Federal Minister for Finance and Revenue. The ECC also approved supplementary grant in favor of Economic Affairs Division amounting to Rs. 193.006 Billion for foreign loan repayments.

  • KCCI demands release of stuck up containers

    KCCI demands release of stuck up containers

    Karachi Chamber of Commerce and Industry (KCCI) on Monday demanded the government of releasing containers imported goods that were banned through SRO 598(I)/2022.

    The chamber in a statement strongly denounced the non-clearance of containers at the ports subsequent to the ban imposed on luxury items.

    READ MORE: KCCI demands implementation of Riba free banking

    The ban was imposed on 85 categories of luxury items vide SRO 598 (i)/2022 which was issued on May 19, 2022.

    Chairman Businessmen Group Zubair Motiwala and President KCCI Muhammad Idrees appealed to Prime Minister of Pakistan Mian Shahbaz Sharif and Minister of Finance Miftah Ismail to issue orders to immediately release the stuck up containers at the port and waive the demurrage charges to compensate for the losses of the importers.

    READ MORE: KCCI appeals rescuing small traders in Catch-22 situation

    President KCCI Muhammad Idrees claimed that around 800-900 containers which were already booked before the issuance of SRO 598, got stuck at the ports as customs authorities were not clearing them.

    Importers are facing additional hit of hefty demurrages which is causing severe distress among them.

    READ MORE: Energy price hike jolts trade, industry: Businessmen Panel

    It has also caused shortage of several items in the market which needs to be addressed urgently.

    Chairman BMG Zubair Motiwala and President KCCI Muhammad Idrees urged immediate resolution of this serious issue.

    READ MORE: Govt. halts gas supply to export industry: APTMA

  • Ship not to be allowed leaving without payment: Zaidi

    Ship not to be allowed leaving without payment: Zaidi

    ISLAMABAD: Ali Haider Zaidi, Federal Minister for Maritime Affairs on Sunday said that the standard ship in Karachi would not be allowed to leave without recovering outstanding dues and inspection expenditures.

    Speaking to media here, he said that the ship was stranded and taken off the shores of Karachi.

    This is the first ship to be stranded and taken off. It is law across the world that the company which owns the ship is responsible for its pull out.

    The captain of the ship did not make any emergency call informing that the ship was stranded, he said.

    He said that on the same day when the ship was stranded on the shores of Karachi. Also the engine, radar of ship was weak. Some 100 tons diesel was extracted from the ship.

    Pakistan on Tuesday detained a cargo ship, which was stuck up at Karachi Seaview beach on July 21, 2021.

    The government has taken the decision to detain the ship after an inspection found the vessel in defective condition.

    According to a letter issued by a department of Ministry of Maritime Affairs to the captain of the ship namely HENG TONG 77 was declared unseaworthy.

    Replying to a question, he said that the government has full faith that Election Commission of Pakistan (ECP) will discharge its duties to ensure free and fair Cantonment Election as its mandate under article 218(3) of constitution.

    However he was surprised to receive a show cause notice as he was not in the constituency since elections were announced. The minister said he has submitted his reply to the show cause notice.

    Pakistan detains ship ‘Heng Tong 77’ for unseaworthy
  • Pakistan detains ship ‘Heng Tong 77’ for unseaworthy

    Pakistan detains ship ‘Heng Tong 77’ for unseaworthy

    KARACHI: Pakistan on Tuesday detained a cargo ship, which was stuck up at Karachi Seaview beach on July 21, 2021.

    The government has taken the decision to detain the ship after an inspection found the vessel in defective condition.

    According to a letter issued by a department of Ministry of Maritime Affairs to the captain of the ship namely HENG TONG 77 was declared unseaworthy.

    “Reference to the inspection of your vessel HENG TONG 77 on July 22, 2021 by the tea of surveyors and subsequent inspections by the surveyors of this department, your ship has been declared ‘unseaworthy’ under the power conferred by section 391 of the Pakistan Merchant Ordinance, 2001,” according to the letter issued by Mercantile Marine Department, Karachi.

    It further said the ship ‘HENG TONG 77’ has been detained under the power conferred by Section 394 of Pakistan Merchant Ordinance, 2001 due to defective condition of the hull, navigational equipment and machinery, which may cause danger to human life on board ship and property.

    The authority said the ship would be released after the satisfactory report of the surveyor of the department, “therefore you are advised to stay at mooring/berth in the port or suitable shelter water after refloating and arrange repair/maintenance of the hull and equipment.”

    Panama registered M.V. Heng Tong 77 was anchored in Pakistan’s waters off Karachi for a crew change on July 21 when it lost anchors due to rough seas and drifted towards the shore.

    Container carrying 39MT sugar sinks at Karachi Port
  • Karachi Port confirms sinking of sugar cargo container

    Karachi Port confirms sinking of sugar cargo container

    KARACHI: Karachi Port Trust (KPT) has confirmed the sinking of a container laden with sugar through a statement released few moments ago.

    It is stated: “Truck loaded with sugar cargo while leaving berth number 5, East Wharf, after issuance of bilty encountered mechanical failure at around 5:20 pm today [Saturday], dated: 31.07.2021, fell in port channel.

    “Driver is safe and no casualty / injury reported. Efforts are underway to recover the truck. The incident is under investigation.”

    According to the sources, the container fell into the sea while handling by a trawler at berth No. 5 West Wharf of Karachi Port, sources said.

    It is believed that the container, which fell into the sea, had carried around 39 metric tons of sugar about 780 bags of 50 kilograms. The sugar was imported by the Trading Corporation of Pakistan (TCP) to provide the commodity at affordable prices in the country .

    The sources said that the breaks of the trawler suddenly failed and lost control. However, driver of the trawler was safe in the incident.

    The monetary loss due to the incident was not ascertained at the time of filing this report but sources said that a ship MV Unity brought 33,000 metric tons of sugar from Dubai on July 27, 2021.

    It was second incident within the jurisdiction of Karachi Port in ten days.

    During Eid holidays a cargo ship was stuck up at sea view Karachi. This ship has not been rescued so far.

  • Container carrying 39MT sugar sinks at Karachi Port

    Container carrying 39MT sugar sinks at Karachi Port

    KARACHI: A container carrying around 39 metric tons (MT) of refined sugar fell into the sea from a ship berthed at the Karachi Port on Saturday evening.

    The container fell into the sea while handling by a trawler at berth No. 5 West Wharf of Karachi Port, sources said.

    It is believed that the container, which fell into the sea, had carried around 39 metric tons of sugar about 780 bags of 50 kilograms. The sugar was imported by the Trading Corporation of Pakistan (TCP) to provide the commodity at affordable prices in the country .

    The sources said that the breaks of the trawler suddenly failed and lost control. However, driver of the trawler was safe in the incident.

    The monetary loss due to the incident was not ascertained at the time of filing this report but sources said that a ship MV Unity brought 33,000 metric tons of sugar from Dubai on July 27, 2021.

    It was second incident within the jurisdiction of Karachi Port in ten days.

    During Eid holidays a cargo ship was stuck up at sea view Karachi. This ship has not been rescued so far.