Karachi traders, iron & steel merchants raise alarm over severe economic crisis
All Iron Steel Merchants Association (AISMA) and All City Traders Ittehdad (ACTI) raised the alarm over the severe economic crisis.
All Iron Steel Merchants Association (AISMA) and All City Traders Ittehdad (ACTI) raised the alarm over the severe economic crisis as the businesspersons are not even able to open new LCs due to the shortage of dollars in the banks which stopped them from purchasing.
The office-bearers of both business organisations said that traders are not able to purchase raw materials and other goods due to a shortage of dollars in the banks.
Hundreds of containers have been stranded in ports due to the insufficient funds available in the banks.
The President of All Iron Steel Merchants Association Hammad Poonawala said that complaints are being received from traders related to the iron and steel business, especially importers, that containers of raw materials are stuck in ports due to insufficient funds in the banks, increasing troubles for the importers.
Poonawala said that the commercial bank is not clearing the documents by justifying the lack of foreign exchange, due to which not only the goods are getting damaged at the ports but also they have to pay heavy compensation in terms of damages.
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If the imported goods are not delivered immediately then the people associated with the construction industry may face serious problems.
The president of the All Iron Steel Merchants Association (AISMA) said that after the closure of steel mills in Pakistan, the iron business consists of imports, due to the non-availability of raw materials and operations shrinking due to the non-clearance of LCs to private steel mills and importers.
He emphasised that the government should consult the business organisations as soon as possible and prepare such a strategy to facilitate the importers as well as the exporters.
On the other hand, the All City Merchants Ittehad (ACTI) has said that the merchant community is extremely worried due to the non-availability of dollars in banks, the closure of imported goods at the port, and the shortage of essential goods.
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The ACTI office-bearers said that due to the non-clearance of LCs by commercial banks at ports, traders’ assets worth billions of rupees are getting spoiled at the ports.
Inflation will increase due to the lack of imported essential goods, which will cause more hardships to the common man.
The ACTI office-bearers added that due to the non-clearance of LCs of pharmaceutical companies, goods are stuck at the ports due to which these operations are being stopped. If this situation continues, there will be a shortage of medicines in the country.
