Logistics Giant DHL to Suspend ‘Import Express Product’ in Pakistan
Global logistics company DHL stated yesterday that it would partially halt some of its operations in Pakistan as a result of the government’s restrictions on outbound remittances. DHL Pakistan has advised its clients that, from March 15, it will suspend ‘Import Express Product’ and limit outbound shipments to a maximum weight of 70kg per shipment for all Pakistan-billed customers.
The company said that the last date for shipment pickup would be March 14 and that packages picked up on or before this date would still be delivered. The PMLN-led coalition government and the State Bank of Pakistan have imposed limitations on the outgoing remittances of international corporations operating in Pakistan due to declining foreign exchange reserves.
“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, the courier service provider said, adding that this constraint has rendered it unsuitable for DHL Express to continue offering its full product line in Pakistan.”
Furthermore, the logistics giant urged Pakistani authorities to remove restrictions on dollar outflows. The company stated that it is in frequent touch with Pakistani authorities in order to restart the full range of services in the nation as soon as possible.
In the meantime, Zubair Motiwalla, the head of the Businessmen Group (BMG), stated that the government should settle DHL’s issues peacefully because exporters rely on the foreign courier service for transporting samples to foreign clients.
Jawed Bilwani, the chief coordinator of Pakistan Fashion Apparel, stated, “We typically deliver the appropriate textile samples to obtain future business.” Nonetheless, some exports of commodities, such as surgical items, are made through Sialkot, while others are produced from Lahore via DHL. He stated that the trading community typically imports goods from other countries.
The government prohibits dollar exports, and Western shipping lines have threatened to terminate operations in Pakistan since banks have ceased remitting freight costs to them due to a lack of dollars. In the first seven months of FY23, foreign investment profit repatriation was $220 million, compared to almost $1 billion for the entire fiscal year of FY22.
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