ISLAMABAD / KARACHI: Federal Minister for Maritime Affairs Qaisar Ahmed Shaikh on Wednesday assured the business community that the government would ensure cost-effectiveness in port operations.

Presiding over a meeting in the federal capital, he acknowledged the concerns raised by various industries regarding the rising port charges at Karachi Port Trust.

He said the government was committed to resolving these challenges and creating a business-friendly environment that supports economic growth.

Acknowledging the rising cargo charges at the KPT, he emphasised the need for ensuring cost-effectiveness in port operations, saying as it was essential for increasing trade competitiveness.

The meeting, held on complaints by chambers of commerce and industry, yarn merchants and other trade associations, discussed the impact of higher port charges at KPT on the cost of doing business.

Asks KPT for comprehensive plan to rationalise charges

The meeting, attended by stakeholders from various government institutions as well as the KPT, agreed to chart a way forward for mitigating the burden on the businesses.

Most of the complainants, who attended the meeting through digital link, highlighted the adverse effects of higher port charges on operational costs, which directly impacted the pricing of imported goods and export competitiveness.

The discussion focused on revisiting port tariffs to ensure that they aligned with regio­nal benchmarks, enhancing operational efficiency to reduce delays and associated costs.

The KPT officials informed the meeting that there were two categories of docking facilities at the port, one that is managed by the KPT while the other by the Dubai Port.

They highlighted that cumulative charges at the berths operated by the KPT were far less than the berths operated by foreign parties, and they asked the complainants to specify their issue.

On their part, the business community representatives failed to identify the berths that were charging exorbitant rates for various services.

It was agreed that the business community will forward details of their complaints to the ministry.

Mr Shaikh directed the KPT and other relevant stakeholders to prepare a comprehensive plan to rationalise port charges while ensuring quality service delivery.

The minister announced the formation of a working group to monitor progress on the decisions taken.

Clearance time

In a separate development, the chief collector of customs, appraisement (South) claimed that the recently launched Faceless Customs Assessment (FCA) System has reduced goods declaration clearance time to an average of 18 hours from the previous 109 hours.

During a visit to the Karachi Chamber of Commerce and Industry (KCCI) on Wednesday, Muhammad Jamil Nasir Khan noted that the FCA system had eliminated the need for importers to visit public offices or engage in lengthy litigation.

Since its launch in mid-December, the FCA has maintained robust revenue collection, with Rs86 billion collected within the first 15 days of its implementation, he said.

Mr Khan said future plans included establishing a centralised examination centre in Karachi, equipped with bodycams for examiners to ensure transparency and real-time monitoring. Financial assistance for the project is being provided by the World Bank, he said, adding that an incentive-based system for appraisers will also be introduced, linking their performance to speed, quality, and quantity of GD processing.

Published in Dawn, January 23rd, 2025