KARACHI: Karachi International Containers Terminal (KICT) is facing a severe operational crisis with over 38,000 containers remaining undelivered, as customs authorities have threatened legal action against terminal management for chronic failures in cargo delivery and infrastructure.
The Collectorate of Customs Appraisement West has issued a stern written warning to KICT CEO Naveed Qureshi, threatening prosecution under the Customs Act, 1969, citing inadequate infrastructure and operational inefficiencies that are crippling port operations and trade facilitation.
More than 10,000 containers piled up in January 2026 alone, revealing the alarming scale of the crisis affecting Pakistan’s main trade gateway, the documents said.
READ MORE: KCAA disappointed by operational failures at KICT, KGTL for two decades
The terminal’s capacity has failed to keep pace with surging cargo volumes. Import data has revealed a 13.54 percent increase in cargo volume at KICT during July-December 2025 compared to the corresponding period last year, while customs examinations jumped 31.25percent.
However, the KICT has not proportionately upgraded its space, trained human resources, or cargo handling equipment, according to the official documents.
“Despite repeated interventions, the issues continue to prevail, adversely affecting customs examination, clearance time, trade facilitation, and overall port efficiency,” the official document said.
A persistent grounding backlog has plagued KICT for months, with containers now being grounded 8-10 days after being marked for examination.
The designated examination area can accommodate only 190-200 containers, yet the terminal operator keeps giving exaggerated grounding figures averaging 300 containers daily, resulting in severe congestion and operational bottlenecks.
The workforce at KICT is critically insufficient for current cargo volumes, the documents said, adding that only 90 labourers work the day shift and a mere 15 during night shifts, with occasional ad-hoc hiring failing to bridge the gap. Since cargo arrangement for examination is done manually, this workforce shortage leads to improper container arrangement and examination delays, it said.
Despite clear instructions, the First-In-First-Out (FIFO) principle is not being followed in container grounding, with containers waiting up to 10 days for grounding while later arrivals are processed first, triggering numerous complaints from the trade over transparency issues, it added.
Official documents also accused KICT of defying Supreme Court orders by refusing to honour delay and detention certificates (DDC) issued under Section 14A(2) of the Customs Act, 1969. Multiple cases referred by legal forums, including the Federal Tax Ombudsman, remain pending for demurrage payments owed to importers facing delays through no fault of their own.
The Customs Collectorate warned that this non-compliance could trigger contempt proceedings.
An express lane initiative announced in early January 2026 to expedite examination of single-item consignments, industrial raw materials, and cargo from reputable traders also remained unimplemented at KICT, the documents revealed.
Meanwhile, sources familiar with the matter revealed that terminals were not solely responsible for the delayed consignment clearance, which costs millions of rupees to the trade daily.
Customs collectorates are working with considerably fewer examiners and appraisement staff, as the majority has been suspended over corruption inquiries.
Data from different terminals reflected the examination issues being faced by customs collectorates. On February 6, 2026, SAPT data showed that around 381 containers out of 456 grounded containers were pending examination, while KICT container status revealed that around 138 containers were opened and waiting for examination.
Similarly, KGTL data showed 44percent of total grounded containers were pending examination. However, the situation seems normal at QICT.
Sources further said that staff posted at all customs collectorates in Karachi had no experience handling such volumes, as they were transferred from Punjab, adding inefficiency to the customs operations.
When contacted, a senior customs official admitted the customs collectorates were working with inadequate staff, saying that FBR had planned to shift appraisements to Islamabad, where fresh appraisement officers would be inducted on market-based salaries to ensure transparency in the process. However, he neither gave any tentative period for its implementation nor explained any ad-hoc measures to ensure trade facilitation during the current situation.
Arshad Jamal, convener Customs Enforcement Committee FPCCI said that if the FBR had budget constraints, they could impose PKR 1,000 per container as special charges to expedite the process of fresh hiring.
He also suggested interlinking all terminals and reviving the containers queue management system, which would not only allow terminals to improve their capacity but also facilitate trade at maximum.
However, the All Pakistan Customs Agents Association (APCAA) has voiced strong resentment over the crisis, saying that containers marked for examination are being grounded after 6-9 days, causing substantial financial losses through excessive container rent and missed contractual commitments. “Traders are directing their frustration towards customs agents, holding our members responsible for losses arising from operational issues beyond their control,” APCAA said in its letter to the KICT CEO.
The association has demanded that containers should be grounded within 24 hours of examination marking and called for zero invoice releases, waiving demurrage, wharfage, and terminal charges for all consignments delayed more than three days.
Copyright Business Recorder, 2026