Ship agents urge FBR to revise transhipment rules amid regional trade disruptions

ISLAMABAD: The Pakistan Ship’s Agents Association (PSAA) has called on the Federal Board of Revenue (FBR) to amend existing transhipment regulations, citing regional maritime disruptions as an opportunity for Pakistan to enhance its role in international cargo handling.

In a letter addressed to FBR Chairman Rashid Mahmood Langrial, PSAA Chairman Muhammad Rajpar highlighted that ongoing conflict in the Middle East has significantly impacted maritime trade, making several major transhipment hubs in the region inaccessible. According to the PSAA, this situation presents a time-sensitive chance for Pakistan to attract international transhipment cargo and position its ports as regional transhipment centres.

The PSAA noted that current customs regulations do not permit the storage of transhipment cargo at off-dock terminals. The association argued that this restriction limits Pakistan’s ability to manage increased cargo volumes that could arise from the current disruptions in regional trade routes.

In its communication, the PSAA urged the FBR to consider revising the rules to allow for the storage of transhipment cargo at off-dock terminals. The association believes that such a change would enhance the country’s capacity to handle additional cargo and capitalize on the shifting dynamics in maritime trade caused by the conflict in the Middle East.

The PSAA’s proposal is aimed at leveraging the current regional situation to develop Pakistan’s ports into key transhipment centres. The association emphasized the urgency of the matter, stating that the opportunity to attract international cargo is time-sensitive due to the ongoing disruptions affecting other regional hubs.

Officials have not yet commented publicly on the PSAA’s request or indicated whether changes to the transhipment rules are under consideration.