DHL Express Pakistan, part of the global logistics company providing courier, package delivery and express mail service, announced on Monday that it will suspend its ‘Import Express Product’ for Pakistan-based importers billed in the country from 15 March 2023.
Moreover, the company has also decided to impose restrictions on outbound shipments to a maximum of 70kg per shipment.
In a letter dated 27 February sent to DHL Pakistan (Pvt) Ltd by the management of DHL Express Pakistan, the latter, addressing its customers, said “as you may be aware, in recent months, the Regulatory Authorities have imposed restrictions on outward remittances for foreign companies operating in Pakistan”.
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The company shared that in the case of DHL Express, the remittances sent by DHL Pakistan cover the cost of DHL’s international aviation, hub, gateway and last-mile delivery incurred through its global network for the shipments sent/received by our valued customers.
“This constraint has made it unsustainable for DHL Express to continue providing the full product offerings in Pakistan.
“Effective 15 March 2023, we will be suspending our “Import Express Product” and restricting outbound shipments to a maximum weight of 70 kg per shipment for all customers billed in Pakistan,” read the letter.
The company said that the last pick-up date will be 14 March 2023.
“Shipments picked up on or before this date will still be delivered,” it said.
The company regretted the ‘unfortunate development’ and informed that the company remains in contact with the authorities.
“We apologise for this unfortunate development and assure you that we understand the significance of express shipping for your business and supply chain. We are in regular contact with the authorities to allow pending remittances for us to resume the full suite of services in Pakistan at the earliest.
“We thank you for your continued partnership and appreciate your understanding of this unavoidable situation,” it continued.
Talking to Business Recorder, a company official said measures are temporary and would be reverted as soon as the restrictions are lifted. “We have also suspended shipments of over 70kg, as the company was not able to bear the cost.”
“We know our customers would be affected by the decision, however, we remain in contact with the authorities to find a solution,” added the official.
Why IMF lending still stalled?
The development comes as Pakistan’s economy witnesses its worst crises in decades, as the country’s foreign exchange reserves remain at a critically low level. Meanwhile, authorities remain busy trying to revive the stalled Extended Fund Facility (EFF) programme of the International Monetary Fund (IMF).
Pakistan’s finances have been wrecked by years of financial mismanagement and political instability – a situation exacerbated by a global energy crisis and devastating floods that left a third of the country submerged last year.
The South Asian country is deeply in debt and introduced tough tax and utility price increases to unlock another tranche of a $6.5 billion IMF bailout.
However, reticence amongst some of the friendly countries in disbursing already pledged support, roll overs, as well as additional lending remain major reasons for the stalled ninth review of the IMF programme, Business Recorder reported on Monday.