ISLAMABAD, April 30: Pakistan has asked the joint war risk committee to immediately withdraw the additional surcharge on ships sailing to and from its ports because the Iraq war has now ended.

Commerce minister Humayun Akhtar Khan told a group of reporters here on Wednesday that Pakistan has already asked the committee for withdrawal of war risk surcharge on Pakistani consignments through its high commissioner to the UK.

He said he would also take up the issue with relevant quarters when he visits London next week after attending a WTO conference in Brussels.

He said the surcharge was unjustified in the first place because Pakistan was not in the war region adding that since the war has ended the surcharge should be withdrawn immediately.

The minister said he would speak at the inaugural session of a conference on post quota environment where most of the EU trade ministers would also speak. Then he would have separate meetings with EU ministers on bilateral level, he said.

Mr. Khan said he would later visit London where he would lead a business delegation besides holding bilateral discussions.

To a question, the minister said that agreement on two separate lists under free trade agreement (FTA) with Sri Lanka is expected to be reached at by June-July this year.

He said that FTA had already been signed by President Pervez Musharraf during his visit to Kathmandu early last year and the only issue to be settled now was the list of items.

He said one list involved items where there would be no duty at all while the other list included items which could not be allowed duty free but duty would be gradually withdrawn in three years.

To a question about commercial electricity rates, the minister said that Wapda was currently working on a new package for off-peak consumption and bulk tariff under which higher consumption would be charged at lower rates.

Regarding protection to car industry, the minister said that a 10-12 year roadmap would be prepared in consultation with the industry to do away with current protection available to them in a gradual fashion.

He however, did not support import of reconditioned cars.

Pakistan has been maintaining that its territorial waters were safe and without threat of terrorism from any side and there was no justification for imposing war risk surcharge on Pakistani ports.

Pakistan’s exports to Middle East, about 16 per cent of total exports, could be affected by the end of current fiscal year. The continued war risk surcharge would also affect its exports to American region and Europe, which are about 56 per cent of our total exports.

In the wake of Iraq crisis, American President’s Line (APL) operating from Pakistani ports also levied war risk surcharge of $30 for 20 to 25 ft container and $60 for 40 ft to 50 ft with effect from April 1, 2003 on the cargo bound for Gulf region.

All shipping companies operating from Pakistan have also raised their bunker charges to $95 for 20 ft container and $190 for 40 ft container from the start of the ongoing month.

The previous hike was made on March 1, 2003 when charges were raised to $90 per 20 ft container and $180 per 40 ft container.