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DHL Logistics Co. Close Operations In Pakistan

KARACHI:DHL , the world leader in logistics , announced on Monday that it would reduce its presence in Pakistan beginning next month. The company attributes the decision to the government’s restrictions on outward remittances for the presence of foreign businesses in the country.

The German company informed its customers in a notice that it would limit outbound shipments to a maximum weight of 70 kilograms on March 15, 2023, for all Pakistan-billed customers. It added that the last day to pick it up would be March 14, 2023. Deliveries will still be made to packages that are picked up before this date.

The development occurred at a time when Pakistan is experiencing a crisis in its balance of payments due to its alarmingly low reserves of foreign currency, just enough to cover imports for less than a month.

According to reports, the government has restricted dollar outflows, putting many businesses in a precarious position. As a result of this constraint, DHL Logistics Express cannot continue to provide Pakistan with all of its product offerings, the company stated.

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“incurred through our global network for the shipments sent/received by our valued customers, according to the customer notice,” DHL Express’s international aviation, hub, gateway, and last-mile delivery are covered by the remittances sent by the Pakistani arm of the company.

A number of Pakistani industries have been impacted by restrictions on dollar outflows and import restrictions. The curbs, which have compelled numerous businesses to halt or reduce their operations, have also been the subject of complaints from pharmaceuticals, automobile, and textile industries.

“We apologize for this unfortunate development and assure you that we comprehend the significance of express shipping for your supply chain and business. In the notice, DHL Express Pakistan stated, “We are in regular contact with the authorities to allow pending remittances for us to resume the full suite of services in Pakistan at the earliest opportunity.”

The International Air Transport Association reported in December 2022 that Pakistan was one of the top blocked markets because the country had not yet paid $225 million in airline funds for repatriation.

With $225 million in withheld funds, Pakistan ranked second among the top five markets (excluding Venezuela), followed by Nigeria, which has blocked up to $551 million. Bangladesh ($208 million), Lebanon ($144 million), and Algeria ($140 million) are the other nations.

The nation is currently in talks with the International Monetary Fund to reach a staff-level agreement that would enable the release of a loan tranche worth more than $1 billion.