Lahore Chamber Demands Reversal of Illegal Air Cargo Fee Hike
An emergency press conference was convened at the Lahore Chamber of Commerce and Industry to protest against a sudden and unauthorized increase in air cargo ground handling charges. Exporters, air cargo agents, and business community members jointly denounced the additional fees as illegal, unethical, and detrimental to Pakistan's export sector, demanding their immediate withdrawal.
Business Costs and Export Competitiveness Under Threat
LCCI President Faheem ur Rehman Saigol emphasized that Pakistan is already grappling with high business costs, which hinder regional competitiveness and slow export growth. He criticized the imposition of new charges as a severe setback, stating that two ground handling companies at international airports have imposed an extra charge of Rs 50 per kilogram without consulting stakeholders or government authorities. Saigol described this move as surprising and unacceptable, noting it violates regulatory procedures and international norms.
He revealed that the Pakistan Airports Authority has issued directives to halt the charges immediately and requested an explanation from the companies. However, he expressed disappointment that these orders are being ignored, urging strict action against organizations that defy government mandates. The Lahore Chamber has pledged full support to the Air Cargo Agents Association of Pakistan, vowing to raise the issue at all forums to ensure fee withdrawal and calling on the Ministry of Commerce and Pakistan Airports Authority to intervene promptly.
Operational and Financial Impacts Detailed
Rana Tariq Mahmood, Chairman of the Air Cargo Agents Association of Pakistan, explained that ground handling companies imposed the charges without legal approval, despite being appointed and paid by airlines. He highlighted that cargo handling costs have operated under a fixed system for decades with no operational changes to justify an increase. With nearly 700 tons of cargo handled daily across airports, the Rs 50 per kilogram hike imposes millions of rupees in additional financial burden on exporters daily, ultimately making Pakistani products less competitive globally.
In response, air cargo agents and related associations have decided to suspend cargo handling operations nationwide if the charges are not withdrawn, halting new bookings and air waybill issuances. Customs clearing agents have joined the protest, with other sectors considering strike action. Jamil Ahmed, Chairman of the Pakistan International Freight Forwarding Association, warned that the fee hike would further damage Pakistan's fragile export sector and create operational challenges for freight forwarders.
Warnings of Broader Economic Consequences
The press conference noted that meat exporters have already ceased work in protest, and other export sectors may follow suit if the issue remains unresolved. Participants cautioned that allowing such unilateral decisions could lead to more illegal charges in the future, severely harming Pakistan's exports and economy. The Lahore Chamber urged the government to provide immediate relief to the export sector, emphasizing the need for swift intervention to prevent long-term damage.
Senior Vice President Tanveer Ahmed Sheikh, Executive Committee Members Rana Shaban Akhtar, Malik Asif, Syed Salman Ali, Mohsin Bashir, and representatives from various trade and export organizations were also present, underscoring widespread industry concern.
