Transport strikes leave economy battered: Zaki

KCCI president urges restraint in future, asks parties to talk first.

KARACHI: President Karachi Chamber of Commerce and Industry (KCCI) Abdullah Zaki, on Monday, said that the chambers has asked transporters to refrain from strikes since they not only disrupt the country’s trade but also cause losses of millions of dollars to importers, exporters and the government.

“We have asked transporters to first consult the Karachi Chamber if they face problems in the future but never opt for strikes, as it is extremely hazardous for the international trade of Pakistan,” Zaki told The Express Tribune.

The 12-day strike roughly caused a loss of Rs25 billion to the national economy, as it completely blocked all national and international through the country’s seaports. This was not the first strike call of United Goods Transporters’ Alliance (UGTA), the alliance of transporters called a similar strike last year in December that choked off national and international trade of Pakistan for about 14 days.

The leadership of KCCI met with transporters on Monday, a day after they successfully negotiated with the government and called off their 12-day strike. The leadership of UGTA visited KCCI’s head office to thank them for their help in negotiations with the government.

On Monday evening, the Federal Bureau of Revenue (FBR) issued a notification in which it reduced advance income tax on vehicles, which are levied based on a vehicle’s weight. The government reduced income tax to Rs2 per kilogramme, from Rs5 per kilogramme it had sanctioned when it came to power in May 2013.

KCCI’s leadership says that it has played an important role in bringing the government and transporters to the negotiation table. Leading importers and exporters say that regular strike calls from transporters have created severe problems for them as they face embarrassment from their international trade partners when they are unable to meet export orders.

The government has assured the transporters that it would disperse Rs270 million for those transporters who lost their vehicles in arson incidents that were reported in different parts of the country after the assassination of former prime minister Benazir Bhutto in 2007.

The transporters’ alliance had put forward 17 demands, including better security for their vehicles on national highways, reduction in income tax and parking facility at Karachi Port Trust (KPT).

Published in The Express Tribune, November 19^th, 2013.

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