MoC may advice govt to allow one-time cargo movement

MUSHTAQ GHUMMAN

ISLAMABAD: The Ministry of Commerce is likely to recommend that the government allow a one-time movement of commercial transit cargo under transit trade with Afghanistan, as traders and transporters continue to suffer heavy financial losses due to prolonged border closure.

The issue was raised by stakeholders from the Chaman border during a meeting with Federal Minister for Commerce Jam Kamal Khan.

The Minister was informed that all transit trade consignments — including those destined for Afghanistan and Central Asian States (Uzbekistan, Tajikistan, etc.) — which were loaded at Pakistan’s ports were later offloaded following the border closure, while the vehicles assigned to these consignments were detached. Additionally, around 600 vehicles that were en route to or had already reached Chaman and Torkham remain stranded at various locations.

Although the Commerce Ministry has allowed Uzbek transit cargo through the Sust and Taftan borders, Chaman border stakeholders, citing Deputy Prime Minister Ishaq Dar’s statement on opening Afghan borders for humanitarian assistance at the UN’s request, urged the Commerce Minister to permit commercial transit cargo on a one-time basis.

“This is crucial because Pakistan’s service sector plays a vital role in the transit trade supply chain, handling port operations, transportation, security deposits, and bank guarantees. Allowing these shipments would minimize financial damage to local businesses and preserve the integrity of legitimate trade,” sources quoted the delegation as saying.

The delegation warned that financial losses have reached an unsustainable level for the entire service sector, which has been honouring commitments to clients largely on credit.

Approximately 10,000 containers remain stuck due to the border closure. With an average detention cost of USD70 per container per day, losses amount to nearly USD700,000 daily, translating into accumulated liabilities running into millions of dollars.

“This massive outflow of foreign exchange represents a national loss for Pakistan, while the beneficiaries are foreign shipping lines,” stakeholders said.

Around 600 vehicles loaded with cargo have remained idle for nearly two months, causing severe financial strain on bonded carriers. With an average detention cost of Rs10,000 per vehicle per day, losses stand at Rs6 million daily, totalling around Rs330 million borne entirely by Pakistan’s service sector.

Port demurrage and terminal yard charges are also accumulating daily. On approximately 8,000 containers, average port and terminal demurrage is estimated at Rs320 million per day at a rate of Rs4,000 per container. The cumulative amount has already reached Rs1.8 billion.

“If these charges are not waived, trade will become unsustainable and the beneficiaries will again be multinational terminal operators,” sources quoted the stakeholders as saying.

Furthermore, bank guarantees worth approximately Rs1 billion have already been submitted to the Directorate of Transit Trade as mandatory security under transit rules. Container security deposits held by shipping lines amount to Rs600,000 to Rs800,000 per container. For nearly 3,000 containers, this totals around Rs2 billion. With these funds blocked, the service sector has exhausted its liquidity and is unable to absorb additional demurrage, storage, and handling costs.

Clearing agents and bonded carriers have already paid port invoices and shipping line delivery orders, despite having no operational control over the situation. The large number of stuck containers has also created congestion at ports and terminals, increasing handling costs and procedural delays.

Chaman stakeholders requested immediate cross-border movement of all in-transit cargo and consignments held at ports and terminals. They demanded that all vehicles currently en route or stationed at the border be allowed a one-time entry into Afghanistan to release vehicles, prevent mechanical deterioration, and settle financial liabilities.

Alternatively, they suggested that loaded containers be shifted to a designated customs custody yard while vehicles are released. If neither option is feasible, they urged the government to allow a one-time re-export of all affected consignments to prevent a total collapse of the service sector.

The All Pakistan Customs Bonded Carrier Association also called for immediate instructions to shipping lines and container terminals to stop charging container detention and port storage/demurrage on all transit cargo, and to waive all charges retrospectively from October 13, 2025, when the border was closed, until its reopening.

Commerce Minister Jam Kamal Khan assured the delegation that their concerns would be taken up with relevant national authorities and raised at appropriate bilateral forums to find sustainable, predictable, and transparent border management solutions that balance security requirements with the need to promote lawful trade and economic activity.