Pakistan, which is facing economic crisis , does not seem to be getting out of it, rather its difficulties are increasing. According to media reports, due to dollar shortage, the import of food and beverages in the country has completely stopped. Due to this situation, thousands of containers are stranded at the ports, due to which the traders have to pay fines and additional charges.
Farhat Siddiqui, secretary of the Wholesale Grocers Association Society of Karachi, said commercial dealers across the country have been forced to stop imports due to dollar shortage. It has been said in the media report that the banks have refused to provide them the required foreign exchange.
Shipment will not be dispatched after June 25th
Quoting Pakistani media, let us tell you that the association held a meeting and decided that no shipment would be sent after June 25. Importers will be responsible for clearance of only those goods which have either arrived at the port or are in transit and any shipment sent after June 25 will not be cleared for entry, the society said.
Thousands of containers stopped at Karachi port
A similar situation prevailed in January this year when thousands of containers filled with essential food items and medical equipment were stopped at the Karachi port as the country grappled with a dollar crunch. If this situation continues, Pakistan may face food shortage, which will further increase the already high prices. A situation that can put Prime Minister Shehbaz Sharif in trouble. The country has already registered the highest inflation in Asia leaving behind bankrupt Sri Lanka.
There was also a setback in the purchase of LNG.
Pakistan got another blow on Tuesday when it did not get any consignment to buy natural gas (LNG). The country made its first attempt in nearly a year on Tuesday to buy LNG from the spot market, but no suppliers of the power-station fuel offered the cargo, according to Bloomberg. No companies responded to Pakistan LNG Ltd's tender to buy six shipments for October to December delivery, which closed on Tuesday.
Pakistan lack of foreign exchange
Pakistan, short of foreign exchange, is required to pay off all its foreign debt to avoid default as no decision has yet been taken on a $1.1 billion bailout package from the IMF. The cash-strapped country tried to save the dollar by restricting imports. However, the move hit industries that were struggling to import raw materials.
Vehicle manufacturer stopped production
A few weeks ago, Indus Motors, a manufacturer of vehicles in Pakistan, halted its production due to disruption in the company's supply chain. In a letter to the Pakistan Stock Exchange, the company management said that its vendors are facing hurdles in importing raw materials and obtaining clearance for their consignments due to challenges in opening letters of credit and supply chain issues.
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