Crisis Hits Pakistan Salt Exporters Amid Rising Red Sea Shipping Costs
Pakistan's salt export industry is currently grappling with significant challenges due to increased freight costs attributed to difficulties in the Red Sea.
Morgan Riley
- 2023-12-29
- Updated 12:09 PM ET
(NewsNibs) - The Salt Manufacturers Association of Pakistan (SMAP) has been forced to confront a sharp rise in shipping expenses, putting the future of the sector in jeopardy. The ripple effect of this increase has led to a call for governmental intervention to alleviate the situation. Exporters are plagued by the escalating costs, which are threatening the economic viability of the industry, a vital part of the country's export portfolio.
Urgent Plea for Government Assistance
With the industry in distress, SMAP has been proactive in seeking government support. The association's acting Chairman, Qasim Yaqoob Paracha, has made a public appeal, describing the challenges facing the sector as an exceptional crisis demanding a multidimensional response from the authorities. Paracha contended that temporary relief could be provided by the national shipping lines, suggesting that the Pakistan National Shipping Corporation (PNSC) should take measures to offer more competitive rates by potentially expanding their vessel fleet.
The urgency of the matter prompted SMAP to make direct appeals to Pakistan's Federal Minister for Maritime Affairs, as well as to the Ministry of Commerce and other relevant entities. They underscored the critical nature of the plight faced by salt exporters and called for swift and decisive action. The association also underlined the necessity for government concessions and assistance to strengthen the local shipping sector, which could, in turn, benefit the larger export community.
As the situation unfolds, the fate of the salt export industry hangs in the balance. Without timely and effective intervention, one of Pakistan's traditional export industries risks facing insurmountable challenges. The government's response to these appeals is eagerly awaited by stakeholders who stress the urgent need for a comprehensive strategy to ensure the survival and prosperity of this key economic sector.
