PM opposes relief for importers

Says special permission for release of consignments from ports will send wrong signals

ISLAMABAD:

Prime Minister Shehbaz Sharif has expressed concern over a plan of giving one-off special permission for the release of import consignments stuck at ports.

Sources told The Express Tribune that a case was submitted to a recent cabinet meeting that sought one-time special permission to clear the way for the release of consignments stuck at ports.

The proposal came after the coalition government imposed a ban on several items due to swelling imports and dollar crunch in the country.

Owing to growing consumer demand, the country had been spending billions of dollars on imports that pushed it to the brink of default.

In the meantime, the government had been struggling to get the International Monetary Fund’s (IMF) stalled loan programme resumed amid Pakistani rupee’s free fall against the US dollar.

Lack of industrialisation has made Pakistan a net importer of almost all commodities except for textile and some other industrial products. There has been no check and balance on the growing imports that mounted pressure on the foreign currency reserves.

During discussion in the cabinet meeting, PM Shehbaz expressed concern that granting one-off relaxation after slapping the ban could not be considered as it would send wrong signals and complicate things.

A cabinet member argued in the meeting that there were some genuine problems of importers whose containers had got stuck at ports, resulting in high demurrage charges on them.

However, the prime minister stated that violation of the ban should entail some penalty and no exception and exemption could be allowed.

After discussion, PM Shehbaz and cabinet members decided the rate of penalty with effect from the issuance of SRO 598(1)/2022 dated May 19, 2022, ie at the rate of 5% for the first two weeks after issuance of the SRO and after the first two weeks, at the rate of 15% till June 30, 2022.

The cabinet was informed that in order to resolve the ‘hardship’ cases, a one-time special permission (under Para 20 of the Import Policy Order – IPO) could be considered for the release of consignments stuck at ports due to the contravention framed under SRO 598(1)/2022 dated May 19, 2022.

However, the one-off relief would be only for those consignments that reached ports or airports in Pakistan on or before June 30, 2022.

It was proposed during the meeting that the date of implementation of IPO 2022 regarding import of timber and wood falling under HS Code 4401 to 4409 may be suspended till August 31, 2022 for the Bills of Lading issued by that date.

The cabinet considered a summary submitted by the Cabinet Division and titled “Ratification of the decisions taken by the Economic Coordination Committee (ECC) of the cabinet in its meeting held on July 5, 2022 through circulation (supplementary summary)”.

It ratified the decisions taken by the ECC with the stipulation that exceptions should not be allowed after the ban and penalty should be imposed in terms of two slabs – from the issuance of SRO 598(1)/2022, at the rate of 5% for the first two weeks and after the first two weeks, at the rate of 15% till June 30, 2022.

Published in The Express Tribune, August 7^th, 2022.

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