By SKM
May 18, 2026
ISLAMABAD: Pakistan’s powerful textile lobby has sounded the alarm over what it describes as the systematic exploitation of importers and exporters through illegal demurrage and detention charges, warning that the practice is not only crippling businesses but also causing massive losses to the national economy.
In a strongly worded letter sent to Prime Minister Shehbaz Sharif, the All Pakistan Textile Mills Association (APTMA)’s Chairman Mr Kamran Arshad urged the federal government to immediately intervene against port authorities and international shipping lines that, according to the association, continue to disregard clear legal provisions and court rulings regarding delay and detention relief.
The textile body claimed that importers and exporters are routinely being forced to pay millions of rupees in demurrage and detention charges for delays that occur due to government procedures, customs clearances, policy decisions, and regulatory bottlenecks — factors entirely beyond the control of the business community.
At the centre of the controversy is Section 14(A)(2) of the Customs Act, 1969, which explicitly requires port operators and shipping companies to honour delay and detention certificates issued by Customs authorities and refund charges imposed where delays are not caused by importers or exporters.
However, APTMA alleged that despite the law being unambiguous — and despite repeated rulings by the Supreme Court and High Courts in favour of traders — shipping lines and port authorities continue to ignore these certificates with impunity.
“The law exists, the courts have ruled, but implementation remains virtually absent,” industry officials said, describing the situation as a serious failure of regulatory enforcement.
According to the association, the consequences have become devastating for industry, particularly for exporters already struggling with rising energy costs, high interest rates, expensive logistics, and shrinking international competitiveness.
Businesses, the association warned, are increasingly unable to clear consignments because detention and demurrage costs often exceed the value of the goods themselves. As a result, many importers are abandoning cargo at ports, creating a chain reaction of economic losses.
APTMA stated that abandoned consignments are depriving the government of substantial customs duties and tax revenues while simultaneously congesting ports and disrupting supply chains. Even more alarming, the association noted, is the continued outflow of precious foreign exchange in the form of payments made to foreign shipping companies for what it called “unjustified penalties.”
The issue comes at a critical time for Pakistan’s economy, which remains under pressure from low foreign exchange reserves, a widening current account deficit, and sluggish industrial activity. Exporters argue that while the government publicly speaks about facilitating trade and boosting exports, businesses continue to face operational hurdles that directly undermine competitiveness.
Trade circles say the problem has persisted for years but has intensified amid tighter import controls, enhanced regulatory scrutiny, and recurring customs-related delays. Many businesses complain that containers remain stuck at ports for extended periods due to procedural complications, while shipping companies continue charging detention fees on a daily basis regardless of who is responsible for the delay.
APTMA has now called on the Prime Minister to personally ensure strict implementation of the Customs Act, direct all port authorities and shipping lines to comply with delay and detention certificates “without exception,” and establish an effective enforcement mechanism to hold violators accountable.
The association also demanded action against officials and entities allegedly responsible for ignoring legal directives and causing financial harm to the business community.
Industry experts believe the dispute reflects a deeper structural problem within Pakistan’s trade and logistics ecosystem, where weak enforcement, overlapping regulations, and institutional inefficiencies often leave businesses trapped between government agencies and private operators.
Analysts warn that unless the issue is resolved urgently, it could further erode investor confidence and discourage industrial expansion at a time when Pakistan desperately needs export-led growth.
For the government, the controversy presents a difficult challenge: balancing relations with powerful global shipping companies and port operators while responding to mounting pressure from the country’s largest export-oriented industry, which contributes the bulk of Pakistan’s foreign exchange earnings.
With tensions rising, all eyes are now on the Prime Minister’s Office to see whether the government moves beyond promises of “ease of doing business” and takes concrete action against what exporters increasingly describe as an entrenched system of financial exploitation at the country’s ports. Ends
