KARACHI (April 07 2010): Representatives of 12 different export sector associations on Tuesday said that State Bank of Pakistan (SBP) failed to implement Foreign Exchange Act 1947's chapter XII rule 11 and SBP Circular No 6, 2006, which are being violated continuously by shipping lines and resultantly inflicting millions of dollars losses on exporting companies.
Speaking at a press conference, which was organised at PHMA House, they said, "the central bank's law for issuance and delivery of bill of lading continues are being violated by shipping companies, shipping agents and freight forwarders (foreign brokers)."
"Several exporters have suffered about $500 million losses since 2002 due to violation of the law," they said, adding that 51 cases of fraud by shipping lines have been submitted while 50 more such cases are ready for FIA's investigation. They alleged that the interior ministry is pressing FIA not to undertake investigation against the shipping lines involved in violation of the law, which also creates problems for exporters.
Some officials of SBP, who are serving for the last one decade on the same position, are also involved in protecting the shipping lines, they added. Representatives of exporting furniture, denim, hosiery, readymade garments, sweater and knitwear, cotton fashion, towel, rice, clothing and textile apparel sectors urged the central bank to implement its law.
Chief Co-ordinator, Pakistan Hosiery Manufacturers Association, Muhammad Javed Bilwani pointed out that these shipping lines are keenly following the same law in Bangladesh because of its strict implementation there. He said that the exporters held talks with foreign heads of the shipping lines who agreed to follow the SBP's law, but the officials of the same companies are wanting to continue the "foul practices".
He said that the several complaints of exporters lodged with SBP on the same issue remained unanswered, which forced them to call FIA for help, as a result, a huge progress in problems resolution was witnessed in a short time. Rafiq Godil urged SBP to become a party in this case against the shipping lines to protect the financial interests of the state and exporters as well.
He said there are many growing exporters, who lost huge money in such swindles, are now in a financial turmoil only because of non-implementation of the law. He said exporters have lodged some 51 cases with FIA, while some 50 cases are ready for submission. He pointed out that exporters have lost about $500 million since 2002 because of the foul practices of the shipping companies, which the central bank has supported by not taking legal action.
Chairman Pakistan Readymade Garments Manufacturers and Exporters Association, Mohsin Ayub Mirza urged the central bank to implement its law for protection of the exporting companies and the state's wealth. "In such a matter the state's responsibility increases to intervene and protect the exporting companies' interests," he maintained. Chairman PHMA Rana Mushtaq, Humayon Laiq, Khawaja Usman, Naqi Bari and Asif Tata also urged the central bank to protect the exporters from the frauds of shipping lines through implementation of the law.
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