Govt plans 50pc cut in port wharfage charges

KARACHI: Maritime Affairs Minister Qaisar Ahmed Sheikh said on Tuesday the government will reduce wharfage charges by 50 percent for exporters at Karachi Port and Port Qasim, following directives from the Prime Minister.

"The government will slash these charges by half to bolster the export sector," Sheikh said at a meeting with businessmen at the Federation of Pakistan Chambers of Commerce & Industry (FPCCI).

The announcement came amidst vocal criticisms from the business community over the steep

increase in cargo handling charges by terminal operators, particularly Karachi Gateway Terminal Limited, which was allocated ten berths at Karachi port last year.

Sheikh reassured the business leaders that measures would be taken to regulate terminal charges and ensure no unauthorized increases occur."We will put in checks at the port terminals and shipping companies to facilitate the business community and exporters."

Sheikh expressed confidence in the coalition government's ability to steer the economy towards recovery and highlighted the Special Investment Facilitation Council as an effective platform for implementing policy decisions.

In response to concerns raised by FPCCI President Atif Ikram Sheikh regarding delays in cargo clearance, the minister disclosed plans to enhance and develop the country's port infrastructure, noting the current global rankings of Karachi Port and Port Qasim at 83rd and 92nd, respectively.

Earlier, FPCCI chief called for devising a policy framework for the ports as inordinate delays are caused in the clearance of cargo, especially at Karachi Port.

Senior Vice President of FPCCI, Saqib Fayyaz Magoon, lamented the lack of progress on the Shipping Advisory Board and proposed the creation of an elevated track within the port area to alleviate congestion caused by heavy imports.

He also called for the establishment of a comprehensive shipping policy, developed in consultation with all relevant stakeholders, and highlighted the recent hike in terminal charges from Rs100 to Rs480 per tonne.