Karachi: A major procedural lapse in the recently issued Customs General Order (CGO) 08/2025 by the Federal Board of Revenue (FBR) has triggered a complete halt of bulk cargo transshipment at Karachi’s ports, leaving hundreds of trucks carrying loose cargo stranded and sparking fears of industrial shutdowns.
The new CGO, notified last week, entirely omits the transshipment (TP) mechanism for bulk cargo. Industry stakeholders say this oversight has paralyzed the movement of essential raw materials such as edible oil and steel coils, which are critical for factories in the tribal regions of FATA and PATA.
Traders Warn of Revenue Losses
A leading trader described the order as “promoting revenue leakage,” warning that the disruption could cost the national exchequer billions of rupees. He added that the CGO could have been issued immediately after the Peshawar High Court’s ruling, but delays allowed exemptions for FATA/PATA consignments to be misused.
Containerized Cargo Prioritized
Industry sources note that while the CGO provides a TP mechanism for containerized cargo, bulk cargo has been excluded. Many industrial units in FATA/PATA lack declared Safe Transportation (ST) warehouses, leaving TP-GD as their only lawful option for moving raw materials. With TP-GD now unavailable, these units face imminent production shutdowns.
Impact on Ports and Supply Chains
The fallout from the administrative lapse has been swift and severe:
Bulk cargo operations at Karachi Port, Port Qasim, and other terminals have come to a standstill.
Importers are incurring daily financial losses running into millions of rupees.
Supply chains for edible oil and steel coils are disrupted, threatening food and construction industries.
Port congestion is worsening, with demurrage and detention charges mounting rapidly.
South Asia Pakistan Terminals (SAPT) is overwhelmed, with no space left to accommodate stranded cargo.
Exchequer Suffers, Operators Gain
Observers warn that the crisis mirrors the financial mismanagement seen in state‑run enterprises such as PIA and Pakistan Railways. While shipping lines and terminal operators continue to earn from delays and congestion—profits that are repatriated abroad—the national exchequer is bearing the brunt of the losses.