PAA overturns illegal export cargo surcharge after PMO’s intervention

KARACHI: Pakistan Airports Authority (PAA) has secured a full reversal of an unauthorised surcharge imposed on export cargo by a ground handling agency, following high-level negotiations that drew the attention of the Prime Minister’s Office and triggered a nationwide outcry from the country’s business community. According to the PAA, multiple Ground Handling Agencies (GHAs) had reportedly been considering such a levy, however, only one operator proceeded to implement it, imposing a PKR 50 per kilogram equivalent to $180 per ton ad-hoc charge on export cargo, a move that provoked immediate protests from exporters and freight agents across Pakistan. READ ALSO: Cargo throughput charges: Islamabad airport collects Rs72. 3mn in March 2025 PAA has not only convinced the operator to withdraw the levy but has also secured a commitment to refund all amounts collected during the period the charge was in effect. The refund process, the authority confirmed, has already begun. PAA said that major trade bodies moved swiftly. The Lahore Chamber of Commerce and Industry termed the charge “illegal and harmful” to Pakistan’s exports. The Federation of Pakistan Chambers of Commerce and Industry issued a stark warning, estimating that the levy was placing a daily burden of approximately PKR 40 million on the national economy. The Sialkot Chamber of Commerce and Industry and the Pakistan International Freight Forwarders Association also raised serious concerns, while the Air Cargo Agents Association of Pakistan formally requested the PAA to step in. The PAA responded by initiating formal discussions with the concerned operator. Upon review, the authority determined that the charge was inconsistent and in direct violation of the contractual agreement signed between the GHA and the PAA. After sustained and constructive negotiations, the authority convinced the ground handling agency that it had no contractual basis for the levy. The operator agreed to withdraw the charge. However, by the time the violation was formally established and the rollback secured, millions of rupees had already been collected from exporters and freight agents. The concerned GHA has now consented to refund the unlawfully collected amounts in full, PAA confirmed. Copyright Business Recorder, 2026

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