Towel consignment worth $30 million stuck at US ports

According to Towel Manufacturers Association (TMA) Chairman S.M. Ubaid, a large consignment of Pakistani exporters consisting of some 400 containers of home textile products worth $30 million have stuck at US ports for the last four months as a US company, Dan River, owned by an Indian investor, has declared itself bankrupt. He said there are consignments of 24 Pakistani companies stuck up on the US ports and demanded of the government to intervene in this matter and resolve the issue through diplomatic channels.

They also urged the Government to influence the Indian government to get the country's $30 million retrieved or get the exported consignments back. Earlier, the trade was being done with this company on L/C but after the verbal assurances of GHCL, exporters began to export their products on 90 days credit, that is cash against document (CAD) and DA basis. On the stuck up consignments, they said that ports demurrages $40,000 are piling up with every single day.

They also requested the SBP to take a lenient view in the repatriation of export proceeds. They said the SBP is requested to refinance, which has been taken against their post-shipment may be converted into loans payable in rupees (rather than in dollars) over time as this has resulted in a major dent in our normal cash flows.