DHL suspends ‘Import Express Product’ in Pakistan from March 15

Published February 28, 2023
DHL Pakistan says it will restrict outbound shipments to a maximum weight of 70kg for all customers.—Reuters
DHL Pakistan says it will restrict outbound shipments to a maximum weight of 70kg for all customers.—Reuters

KARACHI: DHL, a global logistics company, announced on Monday to suspend some of its operations partially in Pakistan due to restrictions on outbound remittances by the government.

DHL Pakistan has informed its customers that it is suspending ‘Import Express Product’ and restricting outbound shipments to a maximum weight of 70kg per shipment for all customers billed in Pakistan from March 15.

The company said the last pick-up date would be March 14 and shipments picked up on or before this date would still be delivered.

Amid fast-dwindling foreign exchange, the PMLN-led coalition government and the State Bank of Pakistan have imposed restrictions on outward remittances for foreign companies operating in Pakistan.

“The remittances sent by DHL Pakistan cover the cost of DHL’s international aviation, hub, gateway and last-mile delivery incurred through our global network for the shipments sent/received by valued customers, the courier service provider said, adding that this constraint has made it unsuitable for DHL Express to continue providing the full product offering in Pakistan.

Urges Pakistani regulators to lift curbs on dollar outflows

The company said it is in regular contact with the Pakistani authorities to allow pending remittances to resume the full suite of services in the country at the earliest.

Meanwhile, Busine­ssmen Group (BMG) chief Zubair Motiwalla said the government should settle the grievances of DHL amicably as exporters need the foreign courier service for sending their samples to foreign buyers.

Jawed Bilwani, Chief Coordinator of Pakistan Fashion Apparel, said “we usually send textile samples which are necessary to secure future orders.”

However, some exports of goods like surgical items are made from Sialkot while some packaging items are also exported from Lahore via DHL. The trading community usually brings in imported items from various countries, he added.

The government is not allowing dollar outflow while foreign shipping lines have also warned of suspending their operations in Pakistan as banks had stopped remitting freight charges to them due to the unavailability of dollars.

Profit repatriation on foreign investment stood at $220m in 7MFY23 as compared to over $1bn in the whole FY22.

Published in Dawn, February 28th, 2023

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Broken promises

Broken promises

Perhaps the biggest impediment to the successful mainstreaming of ex-Fata and its development has been the lack of funding.

Editorial

Wake-up call
Updated 09 Nov, 2024

Wake-up call

Pakistan must heed UN's wake-up call and bring its laws and practices in line with its international human rights obligations.
Foreign banks’ exit
09 Nov, 2024

Foreign banks’ exit

WHY are foreign banks leaving Pakistan? In the last couple of decades, we have seen a number of global banking...
Kurram protest
09 Nov, 2024

Kurram protest

FED up with the state’s apathy towards their plight, the people of Kurram tribal district took to the streets on...
IHK resolution
Updated 08 Nov, 2024

IHK resolution

If the BJP administration were to listen to Kashmiris, it could pave the way for the resumption of the political process in IHK.
Climate realities
08 Nov, 2024

Climate realities

THE Air Quality Index in Lahore once again shot past the 1,000-level mark on Wednesday morning, registering at an...
Rule by fear
08 Nov, 2024

Rule by fear

THE abduction of an opposition MNA, as claimed by PTI, is yet another grim episode in Pakistan’s ongoing crisis of...