KARACHI, Jan 14: Pakistani importers and exporters have paid $100-120 million to the foreign shipping lines in terms of war risk surcharge (WRS) from October to December 2,001.

This was stated by the president, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Iftikhar Ali Malik and chairman FPCCI’s Action Committee on WRS, Shaikh Javed, in a joint press conference at the Federation House on Monday.

They urged the shipping lines to refund the amount collected by them to restore the confidence of the business community which has been facing difficulties since September 11.

They said some shipping agents and their companies are still charging the increased WRS despite the fact that the WRS has been reduced. It is against a uniform policy and system.

To resolve the WRS issue, they said, the secretary commerce and vice president, FPCCI Haroon Rashid would meet the Llyods Underwriters Association in Islamabad on January 15.

Some shipping companies have decided to cut the WRS from January 15. For example, he said the rate of $185 per 20 ft container for Europe has been slashed to $120 while the rate for Far East has been cut to $125 from $150, they said.

They said that the export target of $10 billion seems difficult to achieve in 2001-2002 as the WRS has adversely affected the exports of leather, rice and textile related items.

FPCCI representatives urged the government to take up the matter with the foreign shipping lines or ask the foreign governments to increase the textile quota from Pakistan besides cutting import duties so that exports could be increased.

They said that no consultation whatsoever was made with the FPCCI or any other Chamber of Commerce or the Insurance Association of Pakistan before imposing WRS. Even the finance and commerce ministries were not taken into confidence.

The amount so collected has never been disclosed by the ship agents as to whether it is an insurance premium or a shipping surcharge. Moreover, if is an insurance premium then what risk was being covered i.e. hull and machinery or cargo.