Non-inclusion of actual freight charges: Country incurring $1.5m monthly loss in meat exports to UAE

ISLAMABAD: Pakistan is reportedly bearing a loss of $1.5 million per month due to non-inclusion of actual freight charges in export of meat to the United Arab Emirates (UAE).

Sources said that the issue has been raised by the Customs Intelligence, Karachi, with the relevant customs authorities.

The intelligence agency has written a letter to the Collectors of Customs Jinnah International Airport, Allama Iqbal International Airport, and Benazir Bhutto International Airport Islamabad with regard to non-inclusion of actual freight charges in export of meat to UAE.

APMEPA seeks more incentives to enhance meat export

According to the details, the Minimum Export Price fixed by All Pakistan Meat Exporters and Processors Association includes value of meat plus height charges.

The way remittances against meal export are received in the country on the basis of C&F value.

The Dubai government imposed a ban on export of meat from Pakistan by the sea with effect from October 10, 2023.

This increased demand for transportation of the meat from Pakistan to Dubai. The air freight which was $766/ton in October 7,2023 for Emirates; the biggest carrier of meat from Karachi to Dubai, jumped to $1187/ton in December 2023 registering an increase of 55 per cent.

However, this rise in air freight was not taken into account by the unscrupulous exporters and they continued to export meat @ $3.9/kg which was fixed in March 2023 when freight was even lower and was $713/ton.

It will be known that monthly 3,575 tons of meat is exported from Pakistan to Dubai and non-inclusion of 55 per cent increase in freight into the export value is depriving the country of $1.5 million foreign exchange per month.

Foregoing in view development of a mechanism, whereby, it is ensured that actual freight being paid by exporters is included while they declare the C&F value of the meat being exported out of the country may be considered, the intelligence Directorate added.

Copyright Business Recorder, 2023