Air cargo services may come to halt over ‘dollar shortage’

KARACHI: The Air Cargo Agents Association Pakistan (ACAAP) has warned the government that all export cargoes by air could come to a halt as “banks stopped remitting freight charges to foreign airlines over dollar shortage for three months”, ARY News reported on Monday.

According to details, the Air Cargo Agents Association Pakistan (ACAAP) penned down a letter to Ministers for Aviation and Finance and Governor State Bank of Pakistan (SBP), warning that all export cargoes by air could come to a halt.

In the letter, the association noted that foreign airlines were considering stopping their services for Pakistan after banks stopped remitting freight charges to them over “dollar shortage” for three months.

Due to ban on national carrier – Pakistan International Airline (PIA), these foreign airlines uplift more than 85 percent of export cargo to all international destinations and contribute millions of dollars in earnings to national exchequer.

The ACAAP warned that if foreign airlines stopped their services for Pakistan, serious issues could be created for the country’s international trade.

“If the international trade is stopped the economic situation will worsen,” the association warned, urging the government to issue orders for immediate supply of dollars for air cargo services.

It is pertinent to mention here that the Pakistani rupee continued to depreciate steeply, as it hit a new all-time low of Rs269.10 against the US dollar in the interbank market on Monday (January 30).

The greenback gained Rs36.91 in the interbank market since Thursday after the Exchange Companies Association of Pakistan (Ecap) removed an unofficial cap on the exchange rate.

According to forex dealers, the rupee’s losses continued as the local currency further depreciated by Rs6.50 against the US dollar in the interbank market. The rate of the dollar has reached an all-time high of Rs269.10 in the interbank market.

Banks are selling the US dollars to the importers at Rs270.80, the forex dealers said while the same is being sold between Rs267 to 270 in the open market.