Pulses crisis brews in city

Traders stage protest outside SBP, calling for opening of letters of credit

KARACHI:

As the dollar crisis persists, merchants of timber and pulses for the first time in the country's history staged a protest outside the historic building of State Bank of Pakistan (SBP) on Thursday.

The protest organised by All Pakistan Timber Traders Association (APTTA) and Karachi Wholesale Grocers Association (KWGA) demanded the release of shipping containers stuck at the port due to non-payment in dollars.

APTTA Chairman Sharjeel Goplani said that Karachi's timber market has been shut since Thursday in protest against the refusal of banks to entertain delivery acceptance documents and issue letters of credit. As a result, more than 1,600 shops in the timber market have been shut.

The protesters caused closure of branches of 16 banks located around the timber market. Goplani said that 700 containers loaded with timber have been awaiting clearance at the port for 45 days. Another 2,000 containers are about to reach Pakistan, he added.

He further stated that heavy demurrage and detention charges have been imposed on the importers for the containers stuck at the port. He bemoaned continues depreciation of the rupee against the dollar. He accused Finance Minister Ishaq Dar for running the national economy aground and demanded that he should resign.

Goplani said that the SBP security chief told him in a meeting that the central bank was not subordinate to the government, but that the governor still had a meeting scheduled for January 18 at 4:30 p.m.

Speaking at protest KWGA Chairman Abdul Rauf Ibrahim demanded the release of 6,000 containers stranded at the port, saying that they would stop further imports once these containers were released.

He added that if the containers were not released, a pulses crisis would arise in the country. According to him, 80% of the pulses consumed in Pakistan have been imported over the past 30 years. He demanded that dollars should be made available by the government for clearance of the stranded consignments.

Published in The Express Tribune, January 13^th, 2023.