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The Federal Ministry of Communication is going to set up a 'regulatory body' soon with the help of business community to review increasing freight charges by foreign shipping lines on import and export cargoes.

In this connection, the ministry has formed a six-member committee to look into such issue faced by both importers and exporters.

This was announced by Federal Ministry of Communication, Babar Khan Ghauri, at Karachi Chamber of Commerce and Industry (KCCI) at a luncheon meeting here on Saturday.

He said, "We are well aware of this problem faced by our business community and we are also working to devise a mechanism to establish a 'regulatory body' to monitor issues relating to freight charges on imports, and now on exports, by the foreign flag carriers."

The committee comprises representations from KCCI, shipping lines, freight forwarders and ministry of communication will prioritise the problems and find solutions aimed at promotion of business activities.

The minister, taking serious notice of complaints from business community that shipping lines were charging as per their own choice and the present freight structure is unjustified on imports and exports.

Ghauri assured the KCCI members that he would keep close liaison with the committee to correct the situation as soon as possible.

Earlier, the Chairman of KCCI's sub-committee on shipping, Iftikhar Ahmed Shaikh pointed out that there was no regulatory body to decide the freight structure of foreign shipping lines and freight forwarders.

He said, "If one shipping line is charging Rs 10,000 for a consignment another was charging double without any fear of check." Similarly, the freight forwarders always indulge in such practices freely and without any fear.

On the demand of KCCI members that foreign shipping lines, specially from the neighbouring country India, be allowed to visit Pakistan's ports to promote further confidence building measures and the competition in shipping sector, the Minister said that discussions on the issue had already been held with Indian authorities and hoped that soon a shipping protocol in this regard would be signed.

"In near future Indian flag carrier vessels would be operating at our ports after the signing of such protocol," he said.

Ghauri also assured the KCCI members to be given representation in Port Qasim Authority's board of directors.

As far as, Gwadar Port is concerned it would be decided later as Quetta Chamber members have a seat in its board, he added.

The minister also directed the Karachi Port Trust to allot land to KCCI within one month for setting up of 'Commercial House'.

He said unlike past, now, they would see quick and practical decisions from his side as the government wants to extend maximum support and facilitation to trade and investment.

Earlier, the President of KCCI, Siraj Kassam Teli, briefed the minister about various problems relating to ports and shipping faced by business community.

He described the unregulated shipping lines and freight forwarders as their number one concern.

Copyright Business Recorder, 2004


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