Pakistan’s textile exporters have called on the government to revive and strengthen Pakistan National Shipping Corporation (PNSC) to address the challenges of foreign cargo services. Global logistics and air freight companies had hiked courier and cargo rates by up to 70% in the past six months.
Ijaz Khokhar, the Chief Coordinator of PRGMEA, said, “The increase in prices has adversely affected Pakistan’s exporters and sparked problems for the small and medium enterprises (SMEs) associated with the apparel sector.” The textile exports could serve better when the profit margins are good. However, the lack of quality cargo services of the National Shipping Corporation is a concern. The government should focus on the revival of PNSC so that the textile exports could do the needful to boost the country’s economy.
Sohail Sheikh, Central Chairman, said, “New entrepreneurs, a majority of whom are running businesses online, have been severely impacted by the persistent hike in the cost of DHL parcel service. As a short-term solution, the government should waive taxes on courier services, especially for the export-oriented SMEs, to slash the cost of doing business. This strategy, in particular, can help the government keep freight costs in check and turn textile exports competitive in the global market. It seems that Covid-19 has provided an opportunity to the international logistic companies and shipping lines to enhance freight charges exorbitantly.”
They further mentioned that the country needed to revive and upgrade the PIA cargo service, PNSC, and Pakistan Post to reduce the dependence of businesses on global cargo and courier services.
