KARACHI, Oct 30: The war risk surcharge imposed on Pakistani cargoes will cost an additional freight of more than Rs10 billion annually to the national exchequer, shipping sources said here on Tuesday.

All Pakistan Shipping Association (APSA) chairman Mohammad Farrukh Qaiser told APP that Pakistan’s economy could not afford this high cost at a time when it was facing balance of payment problems and disruption in exports.

“There should be no war risk surcharge on cargoes to and from Pakistan as it is not in the war zone. The US and British navies are protecting the Arabian Sea and there is no danger to cargo ships to and from Pakistan in the area”, he observed.

He recalled that during the wars of 1965 and 1970 between Pakistan and India no war risk premium was imposed on trade cargoes.

Qaiser alleged that international underwriters (insurance companies) were showing their bias against Pakistan and Gulf countries. They have not imposed this surcharge on India, which is also located in the same sea and zone, he added.

Commenting on the cut of 20 per cent in this levy, he said that this trim will not reduce miseries of Pakistani importers and exporters as they still have to pay an extra of $150 on each container.

Pakistani cargo container traffic is estimated at 650,000 to 700,000 containers annually.

In addition, the bulk cargo handling is estimated at about 15 to 20 million tons every year.

He pointed out that on bulk cargo this surcharge is levied at a rate of $2.5 to $3 per ton.

The total impact of this levy will go beyond Rs10 billion annually on national exchequer, Qaiser noted.

He urged the government to actively work with the governments concerned and pursue international insurance companies to withdraw this surcharge as it will badly affect the country’s trade specially exports. —APP