PIA reduces tariff on mango exports by 30%

Move aimed at easing pressure on exporters, earning foreign exchange

KARACHI:  

To ease pressure on mango exporters who fear low international sales owing to compressed demand and lockdowns, Pakistan International Airlines (PIA) has announced a 30% reduction in air cargo tariff to aid the country’s exports and foreign exchange earnings.

The decision was taken on Thursday after a series of talks between a PIA delegation, led by its CEO Air Marshal Arshad Malik, government officials and exporters.

Annually, Pakistan exports around 10,000 tons of high-quality mangoes by air, out of which, most of the fruit lands in Europe, the Americas, Gulf and Middle East and fetches hefty foreign exchange.

“Pakistani mango is a highly demanded delicacy throughout the world and it is known for its sweetness and quality but unlike kinnow the shelf life of mango is lesser, hence, export by air cargo is the most viable option,” said PIA spokesperson Abdullah Hafeez Khan.

“PIA is the leader in the air freight segment having more than 50% market share, hence, its contribution in this regard is of paramount importance,” he said.

With the Covid-19 pandemic and subsequent lockdowns, the growers sought government support and demanded stimulus, he pointed out.

Khan revealed that Aviation Minister Ghulam Sarwar directed PIA CEO Arshad Malik to analyse and take the initiative. “To kick-start the export process at the earliest and to ensure that the produce remains unaffected by the prevalent crisis, it has been decided that air cargo tariff on mango exports shall be reduced by up to 30% in different weight slots with immediate effect,” he said.

According to the air carrier, this move will facilitate and ease pressure on mango growers, who are already suffering from a potentially devastating locust infestation in addition to the Covid-19 crisis. “This is yet another step taken by the national flag carrier in a series of initiatives aimed at promoting Pakistan and its products to support the government and the country in times of need,” he said.

Exporters welcome decision

According to All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA) Patron-in-Chief Waheed Ahmed, who was part of the negotiations, the burning issue of high air freight cost charged by the national flag carrier was highlighted effectively.

He pointed out that the discussion also centered around the closure of Iranian border, which hindered mango exports via land route.

These two issues have caused trouble for the growers as well as exporters, who fear damage to mango export consignments worth millions of dollars in the midst of lockdowns coupled with movement restrictions imposed by the government.

He lauded the swift resolution of exporters’ problems by the government and termed it a historic example taken in the best interest of the country.

“PIA has reduced freight charges and now they are almost half the amount charged by foreign carriers for destinations such as the UK, other European nations, the Middle East and Japan,” he pointed out.

The reduction in freight charges combined with assurances of provision of improved logistics facilities for mango exports to various destinations was the result of a firm commitment made by the PIA CEO, Ahmed added.

“With such attractive freight rates, it is a must to operate regular flights from Karachi, Lahore and Multan during the mango export season,” he stressed. “If PIA ensures good services, we anticipate that 50% of mango exports will be made through the national flag carrier.”

He was the view that the prompt and timely decision by the political leadership would provide great relief for the exporters as well as millions of labourers associated with the sector.

Published in The Express Tribune, June 19^th, 2020.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.