Description:

Concern over a proposal to grant one-time special clearance for the release of import shipments held up at ports has been voiced by Prime Minister Shehbaz Sharif.

According to sources who spoke to The Express Tribune, a case was brought up at a recent cabinet meeting to ask for a one-time special exemption to allow for the release of cargo that was being held up at ports.

The idea was made after the coalition administration imposed a restriction on a number of goods because of rising imports and the country"s dollar shortage.

The nation had been spending billions of dollars on imports, putting it in danger of going into default due to rising consumer demand.

The Pakistani rupee has been falling precipitously against the US dollar while the government battled to restart the International Monetary Fund"s (IMF) lending programme, which had been put on hold.

Pakistan is a net importer of almost all commodities, with the exception of textiles and a few other industrial goods, due to a lack of industrialization. The rising imports that put strain on the foreign currency reserves have not been subject to any checks and balances.

PM Shehbaz voiced worry during a discussion in the cabinet meeting that allowing a one-time waiver after imposing the ban could not be contemplated because it would send the wrong signals and complicate matters.

In the discussion, a cabinet member emphasised that there were some real issues with importers whose containers had become detained at ports, costing them expensive demurrage fees.

The prime minister said that no exceptions or exemptions could be made and that violating the ban should result in some sort of punishment.

Following discussion, PM Shehbaz and the cabinet determined the rate of penalties with effect from the release of SRO 598(1)/2022 dated May 19, 2022, which is at a rate of 5 percent for the first two weeks following the issuance of the SRO and at a rate of 15 percent thereafter until June 30, 2022.

A one-time special permission (under Paragraph 20 of the Import Policy Order - IPO) could be taken into consideration for the release of consignments stuck at ports as a result of the contravention framed under SRO 598(1)/2022, dated May 19, 2022, in order to resolve the "hardship" cases, the cabinet was informed.

The one-time respite, though, would only apply to shipments that arrived at Pakistani ports or airports on or before June 30, 2022.

The date of execution of IPO 2022 regarding imports of wood and lumber falling under HS Codes 4401 to 4409 may be postponed until August 31, 2022 for Bills of Lading issued by that date, according to a proposal made during the meeting.

A summary titled "Ratification of the decisions reached by the Economic Coordination Committee (ECC) of the cabinets in its meeting held on July 5, 2022 through distribution (supplementary summary)" was provided by the Cabinet Division.

It approved the ECC"s conclusions with the caveat that no exceptions should be made after the ban and that a penalty should be levied in two instalments: from the date SRO 598(1)/2022 was issued, at a rate of 5% for the first two weeks, and from there, at a rate of 15% until June 30, 2022.