Security surcharges for Pakistan

17/09/2002

The chairman of the Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA, Mr. Fawaz Ijaz Khan has expressed his disappointment at the decision by Lufthansa Air to impose a ‘security surcharge’ on all cargo to from Pakistan.

The chairman was responding to the German airline's decision to levy an additional PRs 3 per kilogram on shipments made after September 16 2002. Exporters now fear other airlines will be tempted to follow suit, further harming Pakistan's already falling exports.

While acknowledging the political and military tensions in the area, Mr Fawad said the security risk was not strong enough to justify the surcharge.  The foreign airlines had imposed War Risk Surcharge (WRS) on all the cargo to and from Pakistan after September 11 2001, but this was withdrawn after the war in Afghanistan.

Mr. Fawad added the imposition of such unjust Surcharges will add to already inflated costs and that exporters would find it difficult to survive in the international market.

He urged the Lufthansa Air to immediately withdraw the surcharge and reduce the burden on exporters to enable them to compete in international markets.