Global cargo company DHL on Monday announced to partially limit its operations in Pakistan and suspend ‘Import Express Product’ till further notice amid a shortage of the US dollar in the country.
The company has informed its customers that effective March 15, outbound shipments will be restricted to a maximum weight of 70kg per shipment for all customers billed in Pakistan. The last pick-up date will be March 14, and only shipments picked up on or before said date will be delivered after March 15.
Restrictions on outward remittances
The PMLN-led coalition government and the State Bank of Pakistan have imposed restrictions on outward remittances for foreign companies operating in Pakistan due to fast-dwindling foreign exchange.
“The remittances sent by DHL Pakistan cover the cost of DHL’s international aviation, hub, gateway and last-mile delivery incurred through our global network for the shipments sent/received by valued customers”, said the courier service provider, adding that DHL Express finds it impractical to sustain its complete range of services in Pakistan due to this limitation,
The company is in regular contact with the Pakistani authorities to allow pending remittances to resume the full suite of services in the country at the earliest. However, Businessmen Group (BMG) chief Zubair Motiwalla has urged the government to settle the grievances of DHL amicably as exporters need the foreign courier service for sending their samples to foreign buyers. Meanwhile, Jawed Bilwani, Chief Coordinator of Pakistan Fashion Apparel, has said that they usually send textile samples that are necessary to secure future orders.
Deleterious effect on trading community
The partial suspension of DHL operations in Pakistan is likely to affect the country’s trading community, which usually brings in imported items from various countries. Exports of goods like surgical items are made from Sialkot, while some packaging items are also exported from Lahore via DHL. The government’s restrictions on outbound remittances have been causing concerns among foreign companies operating in Pakistan, and this recent move by DHL is expected to add to their woes.
The government is not allowing dollar outflow, and foreign shipping lines have also warned of suspending their operations in Pakistan as banks had stopped remitting freight charges to them due to the unavailability of dollars.
Profit repatriation on foreign investment stood at $220 million in 7MFY23 as compared to over $1 billion in the whole FY22.