KARACHI, June 13: Pakistan business has paid a total of about $300 million war risk surcharge (WRS) to the international shipping lines since it was imposed after the September 11 incidents.

Convener of All Pakistan Action Committee on WRS of the FPCCI, Shaikh Javed has quantified this amount after conducting a study.

The Export Promotion Bureau officials dealing in the WRS issue are not in a position to confirm or deny this quantification, but pointed out that the rates have been showing a constant decline for the last few months and it was hard to calculate the actual amount.

Importers and exporters are still paying the WRS, but not to that extent as it was prevailing after September 11 incidents.

“This is considerable amount for a developing country,” Shaikh Javed said, adding that the business community had been demanding refund of the amount collected from the trade so far.

He said that WRS still existed as the business community paid $60 per 40 ft container and $30 per 20 ft container as compared to $300 per 40 ft and $150 per 20 ft containers in October. In April 2002, the rates were reduced to $106 per 40 ft container and $53 per 20 ft container.

“The unjustified WRS had definitely threatened our local economy to a great extent, although Pakistan was not at war with any country,” he said, adding there was no justification of imposing WRS on Pakistan.

He said some exporters went out of business as they could not sustained the extra burden in the form of WRS.

According to Economic Survey 2001-02, released on Thursday, Pakistan’s exports during July-April 2001-02 stood at $7.3 billion, which were 1.8 per cent lower than $7.45 billion recorded last year in the same period. The worst months for exports have been November to February when it registered a negative growth of 7.6 per cent.

The survey says Pakistan’s trading activities were disrupted after September 11 incidents due to cancellation of export orders, rise in freight charges and imposition of ‘war risk premium.’

Shaikh said the business community was shocked to know that Commerce Minister Abdul Razak Dawood had indicated that no legal action would be taken against the shipping lines for imposing WRS. He said Dawood’s stance on WRS came after a meeting held at the EPB in the first week of May, chaired by secretary commerce Mirza Qamar Baig, who advised the shipping lines and their agents to withdraw the WRS within 15 days.

A senior official in the EPB said the commerce ministry and the EPB had taken up a number of steps to get the WRS removed. During the last three months, the commerce minister and secretary commerce have regularly held meetings with representatives of shipping lines, urging them to lift the surcharge.

He said the matter was also taken up by both the commerce minister and EPB with insurance companies and underwriters in England through Pakistani high commissioner. He said: “our commercial office in the UK is in constant liaison with various underwriters and insurance companies to get the issue resolved.

The EPB official said that the present stance of shipping lines was that since the matter was now in the court they could not take unilateral action and were awaiting for legal decision on issue. Shaikh Javed was of the view that a permanent committee be set up by the government so that any such case like WRS could be tackled in an effective manner.