KARACHI: The President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Atif Ikram Sheikh has said industries are facing severe disruptions in production due to the halting of thousands of tons of petrochemical containers at Karachi Port.
The stoppage, attributed to amendments to the Petroleum Act 1934 in 2023, has left importers burdened with excessive demurrage and detention charges.
Speaking at a press conference at Federation House on Saturday, FPCCI President Atif Ikram Sheikh has urged the government to release the detained raw materials of the industry immediately to avoid further damage to the economy, which is already facing multiple challenges.
On the occasion, Aman Paracha, Asif Inam, Nasir Khan, Pakistan Tanners Association (PTA) Chairman Hamid Arshad, Khalid Tawab, Mian Zahid Hussain, and Shakeel Dhingra were also present at the press conference.
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President FPCCI said that due to a single directive issued by the Ministry of Petroleum in September 2023, the clearance of petrochemicals has been halted, resulting in importers facing thousands of dollars in additional demurrage and detention charges, besides rising prices of industrial chemicals.
He criticized the Ministry of Petroleum for issuing a directive in September 2023 that effectively halted the clearance of thousands of tons of petrochemicals.
“Importers and industries are incurring thousands of dollars in additional charges due to these delays,” Sheikh said.
He demanded of the government to not only release the consigned materials without delay but also engage stakeholders to formulate a comprehensive policy for the import of petrochemical.
On the occasion, FPCCI Senior Vice President Saquib Fayyaz Magoon highlighted the dire consequences of this policy saying that halting of 20,000 to 30,000 tons of petrochemicals at the port has tripled production costs for industries.
It takes two months to receive fresh materials, and industries are on the brink of closure, he added.
Magoon also pointed out that the Petroleum Act 1934 is being misinterpreted, leading to unnecessary complications for the importers and industries.
The FPCCI leadership has called for immediate action to prevent further damage to the industrial and export sector, warning that delays in addressing the issue will exacerbate the another crisis and exports will be directly hurt.
They urged the government to immediately release the detained petrochemical consignments and subsequently formulate a comprehensive import policy for petrochemicals in consultation with stakeholders.
Copyright Business Recorder, 2024
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