Commercial Importers suffered from financial crisis

PCDMA seeks loans for 1 year to overcome liquidity crunch: Amin Yousuf Balgamwala

Karachi, April 03, 2020: Amin Yusuf Balgamwala, chairman, Pakistan Chemicals & Dyes Merchants Association (PCDMA) and former director, Karachi Stock Exchange, has said that commercial importers are facing a severe financial crisis due to lockdown and the closure of trade and industry.

“After the lockdown period, import of goods including raw material will not be able to be restored, which could cause industries to suffer shortages of raw materials, so commercial importers will be given loans with easy terms for a year”. he demanded.

In a statement on Friday, Chairman PCDMA said that coronavirus epidemic had affected not only people but trade & industry also very badly, while business is on the verge of collapse, which is why business community, especially commercial importers are facing financial crisis.

Chairman PCDMA pointed out importers’ payments are trapped and it seems difficult for them to maintain their survival, so Govt provide credit facilities to commercial importers like Export Refinance, as exporters cannot operate without importers.

Amin Yusuf Balgamwala called on the government to provide loans to commercial importers on easy terms and issue directive banks to make immediate payments possible after receiving import document, otherwise the problem of cash flow would become serious.

He cited FBR’s notification C.No.3(1) E&C/2017, in the notification stated that due to the lockdown, demurrage & detention charges may not be charged from the importers for the period of 15 days in addition to the free time already allowed by the port authorities.

“Commercial importers have been approaching us for the noncompliance of FBR order for the waiver of demurrage at port but Terminal operators are not ready to compliance the said order, no action has been taken by the relevant customs collectorates for implementation”, he pointed out.

Chairman PCDMA requested to member customs to issue directives for not charging demurrage & detention from the importers for the period of 15 days and provide the relieve to the trade in this crises due to COVID-19.

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