SHIPPING agents have told the cash-strapped Pakistan government that ocean carriers may discontinue services if they can no longer be paid in US dollars, reports Dakha's Business Standard.
This happened after banks stopped remitting freight charges owing to a lack of dollar availability, said the report.
In a letter to Finance Minister Ishaq Dar, Pakistan Ship's Agents Association (PSAA) chairman Abdul Rauf said the situation may result in severe problems for the nation's international trade.
If international trade is stopped, the association warned the economic situation would worsen, adding that the foreign shipping lines are thinking of ending services in Pakistan.
The PSAA chairman also wrote to Jameel Ahmed, the Governor of the State Bank of Pakistan (SBP), Syed Naveed Namar, the Commerce Minister, and Faisal Sabzwari, the Maritime Affairs Minister.
Mr Rauf urged the concerned departments to intervene and establish continuity in seaborne trade in Pakistan by permitting outward remittance of the extra freight amounts to respective foreign shipping companies.
Pakistan's foreign exchange reserves reportedly rapidly dwindled to more than US$4 billion in recent weeks, giving way to fear that the nation may default, prompting the SBP to apply strict controls on foreign payments.
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