Pakistan association calls for inland freight subsidy

Pakistan association calls for inland freight subsidy
Published: 11 May 2011

All Pakistan Cement Manufacturers Association (APCMA) has asked the Federal Minister for Finance, Dr Abdul Hafeez Shaikh to release PKR270m for inland freight subsidy.


In a letter written to the financial head of the government, Aizaz Mansoor Sheikh, APCMA chairman, requested the finance minister (FM) intervene in the matter to provide relief to the industry, which has been incurring severe losses due to high production costs, declining exports and decreasing local demand.

He reminded the FM that the Economic Coordination Committee (ECC) and Trade Development Authority of Pakistan (TDAP) had already approved an inland freight subsidy on exports of cement by sea.

Accordingly, the government issued a public notice dated March 26, 2010 allowing inland freight subsidy at the rate of 35 per cent on cement exports till June 30, 2010.



“Based on this decision, cement producers exported a huge quantity of commodity – but unfortunately not a single claim was entertained even after a lapse of eight months,” he expressed his concerns. 



The letter pointed out that during these eight months, the overall exports stood at 6.72Mt to different countries in which the exports carried out by sea have a major share.