Industrialists warn Dnata’s ad-hoc cargo charges denting Pakistan’s export competitiveness

Saquib Fayyaz Magoon, Chairman BMP-Progressive and Senior Vice President Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has strongly criticised Gerry’s Dnata for imposing an ad-hoc handling charge of Rs50 per kilogram, excluding taxes, on export cargo, terming the move unfair, unilateral and detrimental to Pakistan’s already strained export sector.

In a statement, Magoon said exporters were already grappling with severe economic pressures, including rising cost of doing business, record-high international freight rates and a challenging global market environment.

“In such circumstances, the sudden imposition of an additional handling fee will directly undermine the competitiveness of Pakistani products in international markets,” he said.

Gerry’s Dnata is Pakistan’s leading aviation ground services provider, operating as a joint venture between Gerry’s Group and Dubai-based dnata. It provides comprehensive ground handling, cargo management, and passenger services to over 20 international airlines across major Pakistani airports, including Karachi, Lahore, and Islamabad.

Magoon noted that industry bodies such as the Pakistan International Freight Forwarders Association (PIFFA) and the Air Cargo Agents Association of Pakistan (ACAAP) had also expressed serious reservations over the decision.

He pointed out that a major share of Pakistan’s air cargo handling is routed through Gerry’s Dnata facilities, leaving exporters with virtually no alternative options.

“As a result, exporters will be compelled to absorb this extra cost, which will particularly hurt time-sensitive exports that rely heavily on air freight,” he added.

The FPCCI leadership warned that unilateral and abrupt charges of this nature not only discourage exporters but also undermine the government’s broader efforts to boost exports.

Magoon urged the federal government, the aviation ministry and all relevant authorities to take immediate notice of the issue and engage stakeholders to ensure that cargo handling charges remain fair, transparent and reasonable.

He also appealed to Federal Minister for Aviation and Defence Khawaja Muhammad Asif to review the matter and intervene to safeguard exporters’ interests. Additionally, he called on the Pakistan Civil Aviation Authority (PCAA) and the Competition Commission of Pakistan (CCP) to monitor the situation to prevent policies that impose unnecessary financial burdens on exporters.

“At a time when the country is striving to increase exports, any additional charges imposed on exporters must be carefully examined to ensure they do not weaken Pakistan’s export competitiveness,” he concluded.