KARACHI, Oct 11: Karachi Chamber of Commerce and Industry (KCCI) has urged the government to ask the port authorities to reduce port and freight charges by at least 50 per cent to offset losses being incurred by exporters and importers of paying higher war risk charges.

In a memorandum suggesting corrective measures, the KCCI asked the government to take up the matter of war risk premium with the shipping lines concerned as there is no war between the US and Pakistan.

The landing cost of raw material is becoming higher, making products more uncompetitive in the global markets, the KCCI said.

The country would not be able to achieve the export target of $10.1 billion in 2001-2002 as foreign buyers have already slowed down fresh bookings from Pakistani exporters after September 11.

The chamber suggested cutting the export refinance rate to eight per cent from the current 11 per cent besides immediate release of sales tax refunds claims.