KARACHI, Oct 16: An importers meeting, called by Karachi Chamber of Commerce and Industry (KCCI), on Tuesday expressed deep concern over levy of war risk surcharge by the US and British insurance companies and delays in confirmation of LCs by foreign banks.

Importers also complained that they were facing problems in getting visa of China, Singapore and Dubai. They asked the KCCI to persuade foreign ambassadors to relax the visa restrictions.

KCCI officials said that the chamber would take up the problems facing importers with the government. A memorandum in this regard would be sent to Islamabad on Wednesday.

A sizeable number of importers, who gathered at the KCCI on Tuesday, passed a resolution making various suggestions to ensure smooth flow of imported raw material and essential goods.

The meeting was presided over by the Chairman, Ad Hoc Committee of the KCCI, A.Q. Khalil and was well represented by importers of Jodia Bazar and Marriot Road.

“KCCI is ready to lead a delegation of importers to any country to meet importers and exporters there if their problems regarding war risk insurance and confirmation of LCs are not resolved,” he said.

He said the KCCI would ask the government to provide sovereign guarantee to the international banks.

A.Q. Khalil feared shortage of raw material in the coming months for the entire industrial sector, which may hamper production activities and result in job losses.

Under the current country’s scenario, he said that foreign investors would not come and even local investors would hold up their modernization and expansion plans. Furthermore, market may run short of essential items as the imports have been on the decline since terrorist attack in the US on September 11.

Besides fall in imports, he said country’s export earnings during 2001-2002 are expected to face a shortfall of $2-2.5 billion in case the present situation persists in future.

Imports during September 2001 stood at $777 million as against $938 million in August 2001 and $950 million during September 2000, showing a decrease of 17 per cent over August 2001 and of 18.13 per cent over September 2000. Imports during July-September totalled $2.5 billion as against $2.73 billion in the corresponding period of the last year, showing a fall of 18 per cent.

Almost all the importers painted a gloomy picture for future arrival of imported commodities due to cancellation of orders and non-confirmation of LCs.

The chairman, Karachi Wholesalers Grocers Association (KWGG), Anis Majeed anticipated a price surge in imported essential items due to levy of war risk insurance by shipping companies at the rate of $7 per ton or $150 per ton on 20 ft container of refer and dry cargo from October 5.

Javed Ilyas of Pak-China Business Council urged the KCCI to ask the Pakistan-based embassies and consulate of foreign countries particularly USA and EU countries to inform their countries about the positive picture of Pakistan’s situation. He said international media like CNN and BBC may be asked to focus on the normalcy in the functioning of trade and industry Pakistan rather than destroying country’s image among foreign buyers.

Importers also urged the KCCI to call a joint meeting of importers and foreign shipping companies to resolve the issue of war risk surcharge. They also asked the KCCI to urge the local port authorities to reduce charges.