Dalsey, Hillblom and Lynn (DHL), a global logistics company, announced the partial suspension of some of its operations in Pakistan due to government restrictions on overseas remittances, Pakistan-based newspaper Dawn reported.
According to Dawn, DHL Pakistan has informed its customers that it is suspending “Import Express Product” and restricting outbound shipments for all customers billed in Pakistan to a maximum weight of 70kg per shipment from March 15
According to the company, the last pickup date would be March 14, and shipments picked up on or before that date would still be delivered.
The Pakistan Muslim League (N) (PMLN)-led coalition government and the State Bank of Pakistan imposed restrictions on foreign remittances for foreign companies operating in Pakistan amid rapidly dwindling foreign exchange.
“The remittances sent by DHL Pakistan cover DHL international aviation, hub, gateway and last mile delivery costs incurred through our global network for shipments sent and received by valued customers,” said the courier service provider and added that this limitation made it unsuitable for DHL Express to continue offering the full range of products in Pakistan.
According to Dawn, the company said it is in regular contact with Pakistani authorities to allow pending remittances to resume full range of services in the country at the earliest.
Islam Khabar recently reported that foreign investment could have boosted Pakistan’s economy. However, the country is not known to have an investment-friendly regime.
Foreign investors avoid bringing money to Pakistan due to various factors such as political instability, macroeconomic policy discontinuity, terrorism, corruption and energy shortage.
Over the past two decades, Pakistan has attempted to implement several FDI-friendly policies. The country strove for far-reaching structural reforms to attract multinational companies that could enable economic growth and job creation in the country.
However, effective implementation of such measures has remained slow due to fundamental problems in the country, including bureaucracy, bureaucratic lethargy, rampant corruption, misguided ideology and extremism, Islam Khabar reported.
Companies from many developed countries are therefore struggling to increase their investments in Pakistan.
Companies like Proctor and Gamble, Oracle Services Pakistan, IBM Pakistan, FedEx (Gerry’s Group of Companies), Marriot Hotels and Troy Group have to turn to the State Bank of Pakistan (SBP) and other departments for minor issues, causing disruption to their Operation.
Proctor and Gamble’s plans to import raw materials and machinery to Pakistan are in limbo due to SBP’s restrictions on importing machinery.