New shipping policy to be approved by cabinet anytime soon: minister

Federal Minister for Maritime Affairs Syed Ali Hyder Zaidi has said that a new shipping policy would be soon approved by the cabinet and would exempt buying of new vessels from taxes and duties to promote shipping industry in the country.

Speaking at a meeting of Korangi Association of Trade & Industry (KATI), he said the new shipping policy would regulate the shipping companies. He said according to upcoming policy freight rates would be charged in local currency instead of dollar, this would cut the cost of doing business. Zaidi said the proposed new policy will also introduce an exemption of sales tax, duties and other charged on buying of shipping vessel to promote the industry in Pakistan.

He said that a comprehensive policy for land approval has been devised which would also restrict the corruption in the process.

He said that now the companies coming to establish LNG terminals would pay 10 million dollars for the land and the government guarantee wouldn't be provided.

Zaidi said that to decrease the heavy traffic pressure on the city a proposal of establishment of refined oil storage near the refineries had been sent to petroleum ministry.

He said the KPT is even ready to bear the expenses of reconstruction of some parts in Lyari Expressway to make it viable for heavy traffic subjected to share in toll charged on the road.

While responding to a question he said that ferry service is conditioned to get NOC from Ministry of Defense, we have applied once again for the service and included Jeddah, Basra, Amman along Dubai for the destination to make it feasible.

He said that cargo and Hajj, Umrah and Pilgrims of Middle Eastern countries can be operated on economic charges with this facilities and the government would welcome the private sector to operate the service.

Zaidi said that in every department we find a "Box of snakes" to resolve the issues of governance.

He said that there was a huge corruption found in KPT's land approval process; many bigwigs exploited that flaws of the process.

He said that evidence of corruption against a former minister had provided to NAB.

President of KATI, Sheikh Umer Rehan said that only one of three oil terminals is operating in Karachi ports and urged to use other nonfunctional terminals for cargo handling.

He said that a direct road from KPT to Northern Bypass should be constructed to decrease the flow of heavy vehicles into the city.

He said that industrial land in Bin Qasim industrial area on hike which was a great obstacle in the way of industrialization.

Umer Rehan also asked that minister to take measures to control the prices of industrial land and to provide energy connection to the new industry of Port Qasim Industrial Area. Head of KATI's standing committee on Port and Shipping, Faraz-ur-Rehman urged the minister to resolve the concerns related to shipping freight and charging of freight rates in higher exchange rates.

He also said that delay of cargo handling due to public holiday traders and industrialist have to bear demurrage which adds into cost of doing business, a policy should be devised to settle this issue.

Zubair Chhaya urged that PM Khan should take personal interest to resolve the issues of the economic hub of the country.

Copyright Business Recorder, 2019