‘Restrictions’ on raw material import: PIAF fears industry’s closure

LAHORE: The Pakistan Industrial and Traders Associations Front (PIAF) has expressed the fear of industry’s closure in the wake of restrictions on industry raw material import under customs tariff chapter 84 and 85, as these restraints have not been lifted yet despite the approval of loan tranche from the IMF.

PIAF Chairman Faheem Ur Rehman Saigol, in a joint statement along with senior vice chairman Haroon Shafique Chaudhary and vice chairman Raja Adeel Ashfaq, observed that the business community was expecting that the imports restrictions will be relaxed as soon as the country receives first instalment of the IMF loan but it is unfortunate that the situation has not changed so for mainly due to mismanagement of the authorities.

If import of industrial raw material, parts and machinery is halted, the industry would stop running gradually, leading to inordinate delay in export orders and damaging the reputation of Pakistan, as some of the sectors have already slashed their productions because they are in a difficult situation in the face of growing currency crisis.

It is to be noted that the State Bank Foreign Exchange Department (FEOD) had made customs tariff chapter 84, 85 import payments conditional on its approval. The commercial banks, after this State Bank’s condition, are not making dollars available to the importers. After the circular issued by the FEOD on July 5, the import of every kind of plant and machinery, capital goods and raw material has stopped. As a result hundreds of consignments are stuck at different ports and almost same number of consignments is on their way.

Moreover, hundreds of consignments remained stuck at the port after government had slapped a ban on the import of luxury items. The importers have to pay now heavy demurrage to the shipping companies, as the government did not fulfill its commitment of waiving off demurrage and detention charges.

Faheem Siagol said that the industry needs a supply chain to run the whole economy, adding big industries require raw material all the time.

Copyright Business Recorder, 2022