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Hundreds of vehicles remain stranded near Torkham

Hundreds of vehicles loaded with goods remained stranded on Peshawar-Torkham Highway and at private parking places in Landi Kotal owing to an unspecified row between the border authorities of Pakistan and Afghanistan over the release of vehicles from both sides of Torkham. — AFP/File

LANDI KOTAL: Hundreds of vehicles loaded with goods remained stranded on Peshawar-Torkham Highway and at private parking places in Landi Kotal owing to an unspecified row between the border authorities of Pakistan and Afghanistan over the release of vehicles from both sides of Torkham.

Transporters at Torkham told this scribe that they were not allowed to cross the border into Afghanistan despite being issued a gate pass by the relevant authorities after completion of their security customs clearance on September 30.

They said that it was unusual for them to be barred from crossing the border after they were issued gate passes as nobody was then authorised to stop them from proceeding ahead.

‘Unspecified’ row between border authorities of Pakistan and Afghanistan slows down goods transportation

The frustrated drivers said that no one among the staff of various government departments was giving them any information as to why they were stopped from going to Afghanistan despite fulfillment of all the legal formalities.

They said that only few vehicles were allowed by the staff of National Logistic Cell and border security to cross the border on daily basis despite official claims about keeping the border crossing opened round the clock.

Custom officials at Torkham, on condition of anonymity, also acknowledged slowing down of goods traffic to Afghanistan from Pakistan. They, however, did not cite reasons for delay in sending the ‘cleared’ vehicles across the border.

Sources told this scribe that Afghan border authorities too had ‘reciprocated’ by slowing down the dispatch of vehicles, both loaded and empty, to Pakistan.

An Afghan driver said that Afghan authorities at their side of the border abandoned their official duties at around 5pm when their duty timing ended and custom clearance was stopped till next morning.

Some of the drivers said that at least 10 days of official work suspension on both sides of the border also caused sudden congestion of goods vehicles.

They said that clearance of goods was suspended on Pakistan side for at least eight days on different occasions owing to two-time cancellation of Prime Minister Imran Khan’s visit to Torkham and then the formal inauguration of 24/7 border operation by him besides Muharram holidays.

“The Afghan government closed the border for two days during presidential elections and all these days trade convoys were forced to stay in Karachi, different cities of Punjab and Peshawar,” they said. They added that it would take at least two weeks to clear the backlog.

Delegation Of Sindh Goods Truck Trailer Owners Association Calls On DIG Traffic Karachi

◇ Sindh – Re:Discover Pakistan

KARACHI, (APP – UrduPoint / Pakistan Point News – 5th Jan, 2021 ) :A three-member delegation of Sindh Goods Truck Trailer Owners Association comprising President Malik Shabbar Khan, General Secretary Muhammad Azam Butt and Joint Secretary Rashid Bandhani called on Deputy Inspector General (DIG) Traffic Karachi Police Iqbal Dara here on Tuesday.

The delegation informed the DIG Traffic of their problems, especially the situation of traffic congestion in and around Maripur Road, said a statement.

The DIG Traffic Karachi assured the members of the delegation to cooperate with them in resolution of all the genuine issues and also asked to visit the truck stand soon so that a better process could be worked out for the future with the help of all the transporters.

Transporters observe strike all across Pakistan for CNG price hike

Transporters observe strike all across Pakistan for CNG price hike

Transporters have announced a strike all across the country to press for their demands. Azmat Ullah Niazi, Chairman Public and Goods Transport Alliance (CPGTA) has reported that all additional taxes on motorways, highways and hikes in fines should be withdrawn.

He said that negotiations with the government are encouraged and that protests “will be stages in Punjab, KPK, Sindh and Balochistan.”

All air-conditioned and non air-conditioned buses will not be operating for transport on Thursday, January 2nd.

Truckers strike slows down export shipments

KARACHI: A transporters strike entered the third day on Wednesday, starting cargos hold ups at ports with exports shipments delayed, traders said.

Cargo and goods transporters are on strike over restrictions in axle load and imposing of hefty fine on traffic violation. All Pakistan Textile Mills Association (APTMA) said the ongoing strike by the transport sector is going to impact exports significantly “as there are no empty containers are available in upcountry for exports”.

In a statement issued to the press, Spokesman of All Pakistan Textile Mills Association said that “As a result of unavailability of empty containers in upcountry due to strike of transport sector, exporters are missing shipment deadlines,” APTMA spokesman said in a statement.

“One additional factor that is a major cause of the scarcity of containers is the large number of orders that have been received from China after the effectiveness of the Phase II of the Free Trade Agreement between China and Pakistan.”

APTMA said that even if the containers were to be dispatched from Karachi at the earliest “they would take three days to reach upcountry where exporters have already have had two days without containers; effectively a further week of exports would have been delayed/lost”.

“Under these circumstances, we request the government to take immediate action for resolving the issue so that no more exporting deadlines are missed.” Manufactures said strike has badly affected export shipments and they are unable to fulfill their commitments.

Javed Bilwani, chairman of Pakistan Apparel Forum, said that Karachi’s ports handled around 9,827 containers on a daily basis, of which 4,665 were for exports and 5,162 for the import. “If the strike is not ended, the country will suffer a loss of nearly Rs10 billion/day,” Bilwani said.

He urged the government to take notice and resolve the issue, as export shipments were being affected due to the unavailability of containers. “If containers were not available, export orders will be met through air shipment, which will cause huge expenses,” Bilwani added.

Malik Sher Khan, senior vice president of United Goods Transporters Alliance told The News that almost 90 percent vehicles observed strike in the country. “Around 15,000 to 16,000 vehicles enter and exit from Karachi on a daily basis, of which 90 percent are on strike,” he added.

Transporters said a 22-wheeler vehicle is allowed to carry 58.5 tons as per law, however the new axle load regime had restricted this limit to 32 tons for being triple-axle vehicle.

The federal government had recently approved revised rates of fines against traffic violations on highways. The penalty, which was Rs750 on every kind of violation, is now being categorised. For speeding, the fine would be Rs1,500 for motorbikes, Rs2,500 for cars, Rs5,000 for trucks, and Rs10,000 for public service vehicles. Khan said they would continue their strike until the government implementation agreed rules.

Pakistan, China traders brave heavy snow and COVID-19 to facilitate shipment

Pakistan-China border, Khunjerab Pass

Islamabad: Traders braved sub-zero temperatures, heavy snowfall and the threat of coronavirus to transport scores of stranded containers from China to Pakistan. All essential COVID-19 standard operating procedures were strictly observed during the transport, officials said.

The containers have been successfully transported from Khunjerab Pass, the major trade route between Pakistan and China, to the Silk Route Dry Port Sost in Gilgit-Baltistan (GB). The local administration and the Frontier Works Organisation (FWO) facilitated the transport of vehicles through the slippery roads due to snow. During the winters, the temperature at the Khunjerab Pass drops to as low as freezing minus 30 degrees Celsius.

Movement of goods amid COVID-19 and snow
The containers that have been stranded on the Chinese side for weeks were allowed to cross into Pakistan from China after the border was opened for a brief period of 10 days (December 15 to 25) to facilitate the cross border movement of goods. The containers reportedly contained machinery for hydro energy projects, coronavirus essential equipment as well as commercial trade shipments.

Highest paved border
Khunjerab Pass in Gilgit-Baltistan is usually closed from November until April due to heavy snowfall in the region. At 5,000 meters above sea level, Khunjerab is the highest paved international crossing in the world, and a major border port between Pakistan and China which also serves as an important gateway to South Asia and Europe.

Pakistan and China bilateral trade has significantly improved with the construction of the multi-billion-dollar China-Pakistan Economic Corridor (CPEC). The trade volume between the two neighbours via Khunjerab Pass surged by nearly 47 per cent to $856 million in 2019. However, the trade at the high border crossing came to a screeching halt in 2020 because of the pandemic restrictions due to which the business community suffered huge losses.

Transporters found undervaluing goods to evade GST

This has resulted in the arrest of 140 persons including 5 chartered accountants. The department has also booked 1,488 cases against 4839 fake entities.

A preliminary investigation showed that the goods reported to the GST system had been under-valued by as much as 30%, sources said. While most evasion cases involved circular trading and issuance of fake invoices without actual supply of goods, the involvement of transporters has also come to light now.
This has resulted in the arrest of 140 persons including 5 chartered accountants. The department has also booked 1,488 cases against 4839 fake entities.
This has resulted in the arrest of 140 persons including 5 chartered accountants. The department has also booked 1,488 cases against 4839 fake entities.
In its drive against goods and services tax (GST) evasion, the intelligence arm of GST administration has found that certain transporters have been colluding with Delhi and Himachal Pradesh-based companies to move undervalued or unaccounted goods, sources in the revenue department said.

A preliminary investigation showed that the goods reported to the GST system had been under-valued by as much as 30%, sources said. While most evasion cases involved circular trading and issuance of fake invoices without actual supply of goods, the involvement of transporters has also come to light now.

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“Searches were conducted at the transporters’ premises in Ludhiana, Jalandhar and Delhi, along with the suppliers of these goods in Delhi and Himachal Pradesh at various locations,” a source said. He added that the goods mainly involved in the racket were footwear/shoes, plastic sleepers, tobacco and shaving foam among others.

During searches and surveys, the field formations found Ludhiana Golden Transport Service of Ludhiana and MNK Transport Company of Jalandhar actively involved in transporting under-valued goods resulting in GST evasion, sources said.

The Directorate General of GST Intelligence (DGGI) has been conducting search and seizure operations from the second week of November. This has resulted in the arrest of 140 persons including 5 chartered accountants. The department has also booked 1,488 cases against 4839 fake entities.

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May 4: Transporters threaten strike in Lahore

photo athar khan

LAHORE: All Transporter Owners and Workers Alliance (ATOWA) has warned it will seize all entry and exit points of the provincial capital on May 4 if their demands are not met by the authorities.

Speaking to The Express Tribune, Pakistan Goods Transporters Association (PGTA) General Secretary Nabeel Mahmood Tariq said all goods transporters associations, including the PGTA, Pakistan Mini Mazda Association, All Pakistan Truck Drivers Union, Punjab Goods Transport Association and All Pakistan Truck and Trailers Association, stand united against the unjust behavior of traffic police and other provincial agencies.

“We are fed up with the undue challans, highhandedness of the Customs Anti-Smuggling officials, alarmingly high rates of toll tax at Lahore Ring Road and illegal toll plazas in the city. Goods transporters are continuously raising their voice and have repeatedly tried to convey their demands to authorities, but no government department is willing to resolve our issues,” he maintained.

It is really unjust, Tariq lamented, that traffic wardens are issuing multiple challans for the same vehicle. It has become a habit of traffic warden to penalise truck drivers without any traffic violation. In addition, he claimed that Customs Anti-Smuggling officials are harassing and arresting truck drivers.

GOODS TRANSPORTERS STAGE STRIKE

“Transporters and truck drivers have no mechanism to confirm that goods loaded on their trucks are imported in the country legally or illegally. Most of the smuggled goods come from the northern areas, but no government dares to stop them in transit. These officials seize goods just to increase the rate of their bribe,” he alleged.

He highlighted that after completion of the southern loop of the Lahore Ring Road, Frontier Works Organisation (FWO), the custodian and operator of the road, has increased road usage tax by over 200 per cent. Earlier, a Mazda truck was paying Rs70 per trip but now it is being charged Rs210.

Similarly, for big truck earlier, truck drivers were paying Rs120 per trip and now this rate has been increased to Rs350 per trip, Tariq said and added that removal of illegal toll plaza from Ravi Road is another legitimate demand of goods transporters on which government is not paying any attention.

Tariq said goods transporters have given four days’ time to the government to accept their legitimate demand otherwise they will be compelled to close all entry and exit points of the city. He said city traffic police and provincial government will be responsible for all economic losses that will be caused by the strike.

4TH DAY OF STRIKE: PHARMACISTS TO PROTEST AT NASIR BAGH TODAY

In the first phase, he underscored the goods transporters have decided to jam provincial government and if the situation persists then they will seize all goods transport across Punjab.

Pakistan’s logistics industry hampering industrialisation and growth

Logistics

Globally, logistics is a $4.3 trillion industry, contributing an average of eight to 10% to the GDP, creating thousands of new jobs and improving export competitiveness substantially. A look at the World Bank’s Logistics Performance (LPI) for the last 10 years provides sufficient evidence; the countries ranked in the top 20 include the 10 strongest economies in the world.

The performance of the logistics sector provides a stark contrast to the economic recession Pakistan has been mired in. As of December 2018, the logistics sector is valued at $34.2 billion, registering an annual growth rate of 18% between 2017 and 2018 (source: Ministries of Communications and Postal Service). However, experts are quick to point out that the figures present only part of the picture because a large segment of the sector operates in the grey economy with no verifiable records or data.

The transport sector inefficiencies are costing economy between 4 to 5% of GDP (Rs. 500 b) each year indicating the need for a massive overhaul of the industry and an overarching policy that directs efficient functioning

There are about 2,500 logistic and freight forwarding companies in Pakistan that not only serve as shipping companies that transport cargo but also provide end-to-end solutions to customers facilitating trade through sea, air, road transport systems and a combination of these modes.

Recently, the transport industry has jumped to protests and suspension of operations due to policy changes. Operations were impact when the government attempted to revise the axle load limits which stirred controversy between the transporters, business community, and the government. The National Highway Authority (NHA) increased the fines imposed on violations approximately 10 times which was not received well by transporters. A speeding fine, for example, which was previously RS. 750 has now gone up to RS. 10,000 for some vehicles.

Read more: Transport Association suspends cargo supplies over increased fines

A countrywide strike is now being observed by transports and logistics members and Chairman Pakistan Hosiery Manufacturers and Exporters Association (PHMA) Jawed Bilwani voiced fear that if the strike was not called off, exports worth RS. 10 billion could be affected on a daily basis, which would deal a major blow to the government’s goal of enriching exports to narrow the trade gap.

TEXTILE EXPORTERS ARE HIGHLY PERTURBED BY THE SUSPENSION OF CARGO TRAFFIC DUE TO A COUNTRYWIDE STRIKE CALLED BY GOODS TRANSPORTERS.HTTPS://T.CO/FQUY0GWQB8— THE EXPRESS TRIBUNE (@ETRIBUNE) JANUARY 8, 2020

“If export shipments are not dispatched timely, exporters will have to resort to air shipments, which cost a great deal more and caused financial loss” said Bilwani.

The World Bank’s LPI presents the latest worldwide view on trade logistics performance across more than 160 countries as seen by logistics professionals. It provides biennial information on logistics infrastructure, service provision, cross-border trade facilitation, and other aspects is invaluable for policy makers, traders, and a wide audience of other stakeholders.

Pakistan’s ranks 95 out of the 160 countries studied with a an aggregate LPI score of 2.64, significantly worse than the highest score 4.19 and not much better than the lowest, 2.00.

 

As Pakistan under Prime Minister Imran Khan’s government strives to promote industrialization and wealth creation to place the country on the road to sustainable economic growth, it is imperative to understand the impact of the logistics industry for the economy. According to Pakistan Infrastructure Implementation Capacity Assessment, the transport sector inefficiencies are costing the economy between 4 to 5% of GDP (Rs. 500 billion) each year indicating the need for a massive overhaul of the industry and an overarching policy that directs efficient functioning.

Exports, imports suffer heavily as cargo transporters’ strike continues

KARACHI: Imports and exports have fallen heavily as angry cargo and goods transporters have continued their strike for 8th day against axle load management policy.

A 22-wheeler vehicle is permitted to carry 58.5 tons as per law but the new axle load management policy has restricted this limit to 32 tons for triple-axle vehicles which has angered transporters.

Fruit and vegetable exporters have suffered an estimated loss of around $1.5 million in a week while the government in its talks with the transporters failed to convince them to end their strike. Cargo containers filled with kinnows, potatoes and onions have been parked on roads with nobody transporting them to the ports.

Truckers fear that axle load policy will lead to an unprecedented increase in the prices of daily use commodities in the country and have demanded the government to devise an economic policy in consultation with all the stakeholders, including the wholesalers, the retailers and the commission agents, to overcome the increasing prices of daily-use commodities.

It has been learnt that about 1,400 goods containers carrying kinnows, potatoes and onions have not been able to reach the ports for their shipment abroad. The strike has badly affected commercial activities across the country as containers arriving from other countries are piling up at ports.

Delivery of imported raw materials to factories has been affected, thus slowing down production and textile exporters have suffered the most.

President of Pakistan Fruit and Vegetable Exporters Association Waheed Ahmed said the current situation of our economy cannot afford a goods transport strike as delay in the completion of export orders will result in the cancellation of deals while new orders will be given to Indian exporters.

Pakistan Hosiery Manufacturers and Exporters Association (PHMA ) Chairman Jawed Bilwani said the government seems to be nowhere the exporters are suffering the most due to the transporters strike. He demanded the government to take immediate notice of the situation and end the cargo transporters’ strike.

According to the Jawed, Karachi ports handles about 9,827 containers on daily-basis which include 4,665 export containers and 5,162 import containers.