Traders demand raw material delivery points

• Businessmen have urged the government to establish delivery terminals for imported raw materials in industrial regions and issue more licences.
• Because imports are now expensive, many SMEs choose to import  (LCL) containers instead of  (FCL) containers.
• He noted that Pakistan is experiencing challenging business conditions as a result of the rise in energy prices and the government’s removal of subsidies.

In order to facilitate and hasten the delivery of imported goods, businessmen have urged the government to establish delivery terminals for imported raw materials in industrial regions and issue more licences.

Salman Aslam, the president of the Korangi Association of Trade and Industry (KATI), addressed a Customs team that came to the KATI office and said, “Issues linked to smooth delivery of goods at the port should be rectified quickly.”

The issue of delayed delivery affects importers, particularly small-scale importers that import fewer than one container, according to Standing Committee Chairman Farazur Rehman in an interview with The Express Tribune.

According to him, shipments become stopped at locations close to Karachi Port, causing importers to experience significant delays, expensive delivery costs, and ensuing traffic congestion.

According to Zulfikar Thaver, president of the Union of Small and Medium Enterprises (Unisame), “it is necessary to facilitate the importers by allowing fast movement of Less Container Load (LCL) cargo.”

He noted that because imports are now expensive, many SMEs choose to import Less Than Container Load (LCL) containers instead of Full Container Load (FCL) containers.

According to him, industrial zones in many developing nations have stations set up for the quick delivery of LCL goods for fast-track logistics. Similar to this, “LCL shipments for SME exporters must be facilitated.”

Taurus Securities Head of Research Mustafa Mustansir stated that in order to establish such delivery sites, adequate infrastructure must be developed. Depending on the industry, industries import raw materials in large amounts.

According to CEO of Arif Habib Commodities Ahsan Mehanti, imported commodities should arrive to factories affordably and promptly to prevent exporters from suffering losses because they are required for value-added exports and to reduce production costs.

He noted that Pakistan is experiencing challenging business conditions as a result of the rise in energy prices and the government’s removal of subsidies.

Chief Collector Customs South Wajid Ali stated that the Customs is innovating and has amassed historically high tax revenues during his visit to the KATI office.

To aid the business community in exports and imports, measures are being implemented. He emphasised that help desks would be set up to assist the business community in important industrial zones like KATI.

The president of KATI emphasised the importance of taking action to open bank branches in trading centres and other industrial locations while designating National Bank branches in industrial districts for the collection of duties.

Aslam added that in order to boost tax collection and foster economic activity, exporters and industrialists should be given the best possible facilities for duty submission.

Chairman of the Standing Committee Rehman proposed the creation of an online complaint system to resolve any difficulties, worries, and complaints of the business community about customs.

According to him, the lack of a regulatory body for container terminals, abuse of tax and duty exemptions granted to the former Fata and Pata areas, delays in tax refunds, unfair demurrage charges, a lack of digitization and insufficient investment in container scanners, an insufficient diversification of HS and PCT codes, and disregard for the principle of cascading for industrial raw materials are the main barriers to efficient customs operations.

“Adequate consultation with the business community’s stakeholders should take place.”

He emphasised that because Karachi contributes 70% of the nation’s revenue and 70% of the city’s revenue comes from the Korangi Industrial Area, issues in the industrial area should be addressed in order of priority.

To streamline operations between merchants and container terminals, he urged the creation of a regulating body for those facilities.