20000129

Foreign airlines impose

fuel surcharge on all

cargo from Pakistan

MUZAFFAR QURESHI

KARACHI: All foreign airlines have imposed a fuel surcharge at the rate of Rs. 5 per kg on all cargo originating from Pakistan for any destination from February 1, 2000 due to what they termed tremendous increase in fuel prices during the year. The raise which has been termed as 'fuel surcharge' will apply to all type of cargo.

A circular sent to cargo agents by the airlines says that since fall of last year airlines are witnessing a steady increase in fuel prices. While last spring the price index was 60 percentage points, it continuously rose and reached in December 136 points, exceeding the limit of 130 points in less than one year and the price has become more than double.

As a consequence, airlines have decided that part of the additional costs will have to be covered by means of a fuel surcharge of USD 0.10 or Rs. 5 per kg of the chargeable weight from February 1, 2000, the circular added.

The airlines will closely monitor the further development of the fuel prices and will reconsider the application of the fuel surcharge accordingly, the circular pledged.

Leading exporters have resented the increase in air freight and said that it would add to the cost of production of textile exports which had already become expensive due to the artificial rise in prices of yarn.

Shabir Ahmed, Chairman Pakistan Bedwear Exporters Association (PBEA) estimated that the freight hike would add to the cost of exports of textile by 20 percent which had already been seriously affected by the artificial rise in prices of yarn.

He pointed out that as a result of depreciation in value of European currencies against dollar the exporters were already suffering losses in their export transactions and raise in freight would add fuel to the fire. Shabir urged the Minister of Communications to intervene and stop the airlines from raising freight unilaterally.