Follow Us on Google News
KARACHI: Thousands of containers—including hundreds of containers of tea—remain stranded despite the State Bank of Pakistan’s (SBP) approval to release raw materials and necessities from the port.
Pakistan imports around 250 million kilograms tea annually.
This situation has given rise to fears of shortage akin to that of raw materials, pulses and other food items, with tea expected to add to the list.
In this regard, Muhammad Shoaib Paracha, a former head of the Pakistan Tea Association, stated that there are real concerns about a serious shortage and a spike in prices in the near future.
“The main reason for the expected tea shortage is the 250 tea containers at the ports till now,” said Paracha who is also member of the FPCCI Executive Committee.
Also read: Pakistan’s textile exports witness massive drop in January
The State Bank allowed the import of containers in Chapters 84, 85 and 87, but it is not clear whether tea leaf is included in it, he continued.
According to Paracha, the State Bank released containers on late payments after 180 days in response to trader protests, but tea leaf vendors do not accept late payments.
It is feared that as a result, retailers won’t accept orders going forward. The situation has become more challenging as a result.
He said that importers had so far been charged demurrage and container fees totaling millions of rupees as a result of the lack of dollars in commercial banks.
“One of the main reasons for the shortage is the absence of a longterm policy by the government,” he maintained.
Paracha added that tea is a basic ingredient that every common man consumes.
