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Economy of Pakistan & Export Trade: COVID’s Negative Influence

economy of Pakistan

COVID-19 has had its toll on everything there is, in a developed/developing society. More specifically, in this case, the economy of Pakistan. More importantly, it has had a constant decremented effect on the economy of a country.

All trade ceased! All work banned. Lockdowns implemented.

What will happen hereafter?

Crowded Ports & Exporter Crisis for the Economy of Pakistan

Trade livelihood affected the most. Ports abandoned. Shipments returned. Almost everything is in a kind of limbo.

Container Handling Equipment is figuratively rusting, left unused in the ports & docks all across the globe. Not even handling the shipments properly. All due to the lack of space and the negligence of the buyers.

Pakistan port and all over in general, are a target of all such negative karma. The distributor or seller, moreover an exporter, in general, is at the most loss. Shipments once dispatched reach the destined port and due to the lockdown and safety precautions, the port workers being not available. The shipment/cargo/containers stay untouched and unattended.

Ports are getting more and more crowded. For instance, Cargo Bays in Los Angeles and Louisiana are overflowing with shipments and in the next few weeks, the cargo bays will have reached their maximum capacity. And such bays are listed as one of the few expanded bays in the global listing.

After a specific duration says in most cases 21 days, the shipment at the shipping port is moved to a custom storage, which automatically implements high fees and charges to get it out of storage and a lot more to get in unloaded and distributed.

So, a lot of buyers just withdraw from their deals, and the cargo is either stored, never to be heard from again. Or it is reverse shipped and all the heavy prices of custom, storage, and whatnot, the exporter has to pay all of them in order to recover one’s own shipment/cargo.

economy of Pakistan

How has Congestion in ports been negative on the economy of Pakistan?

What has been done to deal with it so far?

Ports are just stacking up boxes and containers, one over the other. Just sacking them all the way up. No-one to take the shipment off the docks. Or even take up the whim to re-dock it out, so it doesn’t end up in storage.

Such congestion in the docks/ports in almost every major trade-location dock there is affecting the economy of Pakistan as well as the buyer on a large scale. The buyer sends the shipment to the buyer who is in need of material for usability. But instead, nor does the buyer attain the material, nor does the seller get one’s own payment.

Owing to the distinctly written Global B/L Terms, in the T&C section, the buyer will send the shipment and is responsible for the shipment until the client has gotten custody of the shipment and has released the funding.

This is a major drawback lies with the B/L Terms. Such constrict the seller to only be free of the responsibility of the shipment until the buyer has affirmed its arrival and has released the funding along with the receiving receipt.

In Pakistan, let’s refer to Karachi port for the time being. It is overflowing with over 27,000 containers and shipments all left unattended as well as some export shipments which are also left unattended and the lack of space is mortifying.

PICT Port Terminal Cargo Services tend to provide the best trade-terminal and the best port-trade solution in over 15+ major countries and even more countries in general. Here in Pakistan, it tends to satisfy all of the shipper’s as well as buyer’s requirements and needs.

 

About the author

Engineer Javeria

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