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Page 1: Problem of Importer c

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 Isma Nizam (m12bba013)

 Maria Nazeer (m12bba019)

 Zartasha Shaukat (m12bba057)

 Kehkashan Sakhawat (m12bba067)

  ! (N")#$%  Semester 

 %&"('niersit *+ ,un-ab)

Group Members:

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Problems of importers

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ECONOMY OF PAKISTAN AT A

GALANCE

26th Largest World Economy (PPP)6th Largest World Population with GDP

per Capita of$ 1,427

133rd rank for GDP per Capita with36% undocumented economyNet Ele!en Countries in worldemerging Economy " BRICS

#oreign Currency $eser!es in %&'

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Major Sector o !con

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Primary Sector 

', -griculture.,,24% of GDP & 44% of empl%,/ining..,0.5% of GDP

', 0ndustry.,,24%of GDP•.-utomoti!e industry•.Construction material•. 0nformation technology•. 1etile•.2thers

', Largest user of CNG

Seconary Sector 

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Ser!ices Sector 

Minor Sector 

', 1elecommunication er!ices%,3ousing4,#inance, 1ransportation

',Energy%, Pharmaceuticals * Chemicals

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E"PO#T PE#FO#MANCE OF PAKISTAN

Quantum of exports is $%&'( billion

Ma)or E*ports• 1etiles•5egeta6les

•Leather•-nimal farming•#ood * 6e!erages•2ther manufactured items

 M a ) o r  e *

 p o r t  p a

 r t n 

  • C h i n a

  • 7 - E

  • G e r m

 a n y

  • - f g h a n

 i s t a n

  • 7 n i t e d

  s t a t e s

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Import PE#FO#MANCE OF PAKISTAN

Quantum of exports is $+,'+ billion

M a  ) o r  I m  p o r t   

•  C h i n a •  7 -E •  

8 u w a i t •  / a l a  y s i a •  ) a u d i  -r a 6 

Ma)or imports•#ood

•/achinery• 1ransportation 5ehicle•#ertili9ers•$e:ned and crude oil

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alance o

f  Pa

ymen

“Systematic record of total outo! of foreicurrencies and receipts of forei"n paymen

Up-to date state

•$%('+ billion e-cit.%/0+102 economic s3r!eof Pa4istan5

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F astest  Gi mport

P akis

Tanks, artillery, missiles, rockets, guns & ammunitionCivilian aircraft (complete)Sports apparel & gear

• $753!million

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M ajor I mports F rom Asian

C ountries

'oa

ac#Te

"oilers, ac#inery anmec#anical appliances,

Telecommunication appl aneuip, %lastic an articles

*nimal or vegeta+lefats an oil, %etroleum

proucts an oil,anmae fi+er an

yarns, %aper,paper+oar

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E OC R eport 

Pakistan is the 67th largest export economy in the world and

!6th most "omple# e"onom$ according to the Economic

Complexity Index (ECI).

n -.!/ Pakistan imported $/7/" making it the %&r'  largest

in the world.

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Su+stitute 0or mports

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Ethanol a (ia)le su)stitute

for oil in motor (ehi"les

su)stitut

Ethanol 

!ood crops like sugar "ane an' mai*e can "et#rned into ethanol  %or #se as a s#"stit#te %or Oil in

automo)iles

&he s#rging import "ill on oil can "e red#ced thro#gh

the promotion o% this new initiati'e as s#"stit#te %or

motor 'ehicles oil it can sa'e %oreign exchange o%

estimated %!! million 'ollars

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Coal as S3bstit3tefor Gas

e ha'e to #se o#r "oal reser(es to con'ert

into natural gas+

Coal gasifi"ation an' "oal,to,li-ui' are some

pro'en technologies which can "e s#ccess%#lly

employed in Pakistan to red#ce dependence onimporte' oil an' natural gas.

 Coal gasi%ication o%%ers one o% the most

'ersatile and cleanest ways to con'ert coal into

*as.

Substi

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.io'iesel "ommer"iali*ation

in Pakistan

&he ma+ority o% the worlds energy

s#pplied thro#gh petro"hemi"al

"oal an' natural gas.

.io'iesel  de%ined as ,a substitut

additive to Diesel fuel that is derioils and fats of plants and animal

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Compresse' 0atural Gas 1C0G

as Inter Fuel 3u)stitution

4$'ro"ar)on 5e(elopment Institute of

Pakistan (IP) has pioneered the #se

o% en'ironment %riendly Compressed

0atural Gas 1C0G2 in road transport

 /s an economically 'ia"le inter,fuel

import su)stitution in petrole#m sector.

 A3 

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P ro)lems  f Importers

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Custom E #ams$auses extra costs anduneasiness•Document $e!iew•5ehicle and cargo inspectionsystem

•Physical * unloading inspection•ampling * la6oratory test Dem#rrage

“occur at te port area !en tare eld lon"er tan te a"re

free time for te use of teicontainers# 

•Causes additional costs and de

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Damage• 1ransportation damage•Lifting up damage

'f any dama"e appens( te claim to teri"t parties sould )e done in a timely

manner accordin" to te claim procedures

Per Diem

•  charge applied 6y the steamthe use of their e;uipm

• 1his late return of the empty will cause additional charges timporters

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Detenti n

<charged 6y the truckers due toecess time taken 6y the consignee

for unloading the cargo>

Missing D cuments:

0f the original ?@L or other impo

document are lost it willA•aBects the freight release procthe shipments•might cause etra charges likedemurrage to the importers

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Cust m Clearance Pr blem

•0f your consignment get late clearthenA• shipping costs could go up 6yhundreds or thousands of dollars•2ther etra costs to importer 6usiness

Strikes

•!or* stoppa"e caute mass refusal ofemployees to !or* •+esulted into delaysipment and extra

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Overwe ight / Unevenl !istribute! carg

0f weigh shown in document is less than the actualthenA•,e container needs to )e ta*en to a facility to )eopened up so tat te car"o inside te container can)e stu-ed eenly on eac axle and tis causes extra

costs to te importer.

Penalties

•#ailure to comply terms and ru•#ine for su6mitting incorrect incustom

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" li!as

•Congestion due to 6usytransportation,•hipment gets delayed•Etra costs like demurrage per

diem etc # st C ntainers at th

terminal

•,ime ta*en for searc ofcontainer at )i" ports•/ut of control delayedsipment & extra costs

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O$ening % #Cs

•Dicult for less creditworthyimporters• Causes illegal means to import,

&errorism•7ncertainty in shipment •3igher cost paya6le 6y imof aBected areas

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Prevalence % 'bsent #ab r

•trike of la6or•#inancial loss of concerned parties

Currenc (isk•#inancial loss if price high of foreig

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“6 it a little precaution( it is possi)le to )e p

!it a contin"ency plan for oercomin" unfocircumstances. Some of tese issues are not

control( so it is important tat te entire transp plan )e accompanied !it a contin"ency pla

mana"in" any o)stacle tat mi"t come in t

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