Ministry seeks outstanding Rs1.7b in wharfage charges
PSO says matter will be settled as soon as PQA clears port charges
A Reuters file photo of a man counting Pakistani rupee.
ISLAMABAD:
The Ministry of Maritime Affairs has sought immediate intervention of the government to force Pakistan State Oil (PSO) to pay outstanding wharfage charges of Rs1.7 billion to the Port Qasim Authority (PQA).
According to an official, the ministry told the government that since PSO was importing liquefied natural gas (LNG), it was bound to pay wharfage charges as per the Gazette of Pakistan. PSO had to pay the wharfage cost at the rate of Rs87 per cubic metre since March 2015 when the first LNG vessel arrived at Port Qasim. However, it refused to bear the cost on the plea that a notification about wharfage charges on LNG vessels was not available in the Gazette.
Later, the Ministry of Maritime Affairs notified an amendment and included LNG wharfage tariff in the overall tariff at the same rate of Rs87 per cubic metre as applicable to other petroleum products.
PQA also argued that port charges included the wharfage cost applicable as per the tariff notified in the Gazette, which stated “unless otherwise notified, wharfage will be charged on all goods landed and shipped or passed in or out of Port Qasim bonded premises.” Furthermore, the wharfage charges are recoverable by weight or measurement, whichever is higher. Tonne, unless otherwise specified, means 1,000 kg by weight or one cubic metre by measurement.
PSO started paying wharfage charges after February 2018 at the prescribed rate. However, Rs1.69 billion is outstanding on account of 139 LNG vessels brought by PSO from March 2015 to February 2018. The Ministry of Maritime Affairs has requested the Petroleum Division to help clear the dues of Rs1.69 billion.
The ministry pointed out that though PSO had paid sales tax of Rs220.5 million on the outstanding Rs1.69 billion, it refused to clear the principal amount. The Economic Coordination Committee (ECC) took up the issue in its meeting last month and constituted a committee headed by the minister of economic affairs.
Its members included the minister of power, adviser to prime minister on institutional reforms and austerity, maritime affairs secretary and Petroleum Division secretary. They were tasked with looking into the issue of outstanding dues and submitting a report and recommendations.
Responding to the request for comment, a PSO spokesperson said: “PSO has withheld wharfage payment of Rs1.6 billion to the PQA due to the pending settlement of certain long outstanding payments in respect of port charges, which the PQA has to pay to PSO.
“In a recent ECC meeting, PSO assured it that the wharfage payment matter will be settled as soon as the PQA clears the port charges. Based on the ECC directives, a committee has been formed to sort out the overall issue.”
Published in The Express Tribune, November 21st, 2019.
The Ministry of Maritime Affairs has sought immediate intervention of the government to force Pakistan State Oil (PSO) to pay outstanding wharfage charges of Rs1.7 billion to the Port Qasim Authority (PQA).
According to an official, the ministry told the government that since PSO was importing liquefied natural gas (LNG), it was bound to pay wharfage charges as per the Gazette of Pakistan. PSO had to pay the wharfage cost at the rate of Rs87 per cubic metre since March 2015 when the first LNG vessel arrived at Port Qasim. However, it refused to bear the cost on the plea that a notification about wharfage charges on LNG vessels was not available in the Gazette.
Later, the Ministry of Maritime Affairs notified an amendment and included LNG wharfage tariff in the overall tariff at the same rate of Rs87 per cubic metre as applicable to other petroleum products.
PQA also argued that port charges included the wharfage cost applicable as per the tariff notified in the Gazette, which stated “unless otherwise notified, wharfage will be charged on all goods landed and shipped or passed in or out of Port Qasim bonded premises.” Furthermore, the wharfage charges are recoverable by weight or measurement, whichever is higher. Tonne, unless otherwise specified, means 1,000 kg by weight or one cubic metre by measurement.
PSO started paying wharfage charges after February 2018 at the prescribed rate. However, Rs1.69 billion is outstanding on account of 139 LNG vessels brought by PSO from March 2015 to February 2018. The Ministry of Maritime Affairs has requested the Petroleum Division to help clear the dues of Rs1.69 billion.
The ministry pointed out that though PSO had paid sales tax of Rs220.5 million on the outstanding Rs1.69 billion, it refused to clear the principal amount. The Economic Coordination Committee (ECC) took up the issue in its meeting last month and constituted a committee headed by the minister of economic affairs.
Its members included the minister of power, adviser to prime minister on institutional reforms and austerity, maritime affairs secretary and Petroleum Division secretary. They were tasked with looking into the issue of outstanding dues and submitting a report and recommendations.
Responding to the request for comment, a PSO spokesperson said: “PSO has withheld wharfage payment of Rs1.6 billion to the PQA due to the pending settlement of certain long outstanding payments in respect of port charges, which the PQA has to pay to PSO.
“In a recent ECC meeting, PSO assured it that the wharfage payment matter will be settled as soon as the PQA clears the port charges. Based on the ECC directives, a committee has been formed to sort out the overall issue.”
Published in The Express Tribune, November 21st, 2019.