KARACHI, Dec 4: In a short period of two months, the country had to pay a huge amount of approximately $54.77 million as War Risk Premium (WRP) imposed by the foreign shipping lines since Oct 1, 2001, exporters said.

Despite the fact that there had never been a risk in the shipping lanes nor at the two ports — Karachi Port and Qasim port— the foreign shipping lines had exorbitantly imposed surcharge ranging from $100 to $200 per TEU and $4 to $5 per ton for bulk cargo.

Taking into account the annual turnover of bulk cargo and containers traffic at the two ports, a poor country like Pakistan in a short period of 60 days had already paid around $54.77 million towards war risk premium, exporters lamented.

An expert in shipping business, Capt M S Bukhari said four vessels of an average size normally touching our ports, could have been purchased, with an average price of $12.75 million out of the amount, so far, paid towards WRP.

“How long the rich western countries will go on fleecing poor countries like ours who are already over-burdened with huge debts and cash starved,” a leading exporter of bedlinen, Shabir Ahmed, said.

According to official figures, the two ports handle 40 million tons of bulk cargo and 855,000 TEUs per annum. The annual container traffic at Karachi Port is at 650,000 TEUs and at Port Qasim 205,000 TEUs. Similarly, the handling of bulk cargo at Karachi port stands at 25 million tons and at Port Qasim at 15 million tons per annum.

Consequently, the annual bill towards WRP would come at around $200 million for bulk cargo at the rate of $5 per ton and $128.3 million for container traffic at an average rate of $150 per TEU at both the ports. The combined surcharge would come at around $328.3 million.

This means that monthly payment towards WRP for bulk cargo for both the ports comes at around $16.7 million and for container traffic at $10.685 million. Therefore, payment of surcharge during last two months i.e. Oct and Nov 2001 would be at around ($16.7+$10.685x2) $54.77 million.

Capt M S Bukhari further said looking at weekly sailing with approximate calls of vessel-per-week to Pakistan, it comes to five vessels per week. This means, he said, only five vessels are exposed to so-called war danger which is again a disputed subject.

The correct situation, Capt Bukhari said, was that vessel of value $3.5 to $22 million are plying or reporting at our ports, which gives an average value of $12.75 per vessel.

Consequently, when insurance liability is calculated for five vessels at $12.75 per ship a total risk comes to $63.75 million.

Instead of getting some relief and benefit from the allied nations in a war against terrorism, Pakistan is being penalized by those who are seeking its assistance in this war, the chairman Pakistan Garment Manufacturers and Exporters Association (PRGMEA) Masood Naqi said.

He said, “our $20 billion external trade (Export/Imports) have become costlier and have become uncompetitive in the world market.” As a result of this, he said our competitors have started capturing our traditional markets.

But it is unfortunate to see that the government has adopted indifferent attitude towards this most important issue presently confronting export trade, Masqood Naqi asserted.

The ministry of Commerce and Export Promotion Bureau are directly responsible as the subject of insurance falls under their responsibility, he added.

He also questioned the role of Pakistan’s envoy to UK in dealing with underwriters and reinsurers who are mostly based in London.