Pakistan's government classifies wood as an essential item

  • text size

The Pakistani government has recently created a list of essential and non-essential items and imposed a ban on all non-essential items. However, after several meetings with representatives from the Pakistani Chamber of Commerce and Wood Trading Body, the government has agreed to classify wood as an essential item due to its widespread use in packaging and construction. As a result, the ban on wood has been lifted.

However, there are still some challenges to be addressed. Banks are currently offering a letter of credit (LC) of at least 180 days for those who wish to import wood. Alternatively, transactions can be conducted through Dubai, with documents sent to Pakistan accompanied by a swift message indicating that payment has been received via Dubai. The government has permitted such transactions until March 31st, although it is possible that this deadline will be extended for another quarter.

In regards to the wood market, many sellers have accumulated significant stockpiles but are not selling much due to their preference for higher prices. This is evident in the reduced attendance of Pakistani people at the recent Dubai Wood Show fair. Despite this, two companies showcased and exported high-quality plywood to the Central Asian and Middle Eastern markets.

As is the case with other markets, the Pakistani market is keen on importing products at competitive prices. There is always a demand for softwood, including beams, S4S planks, boards, and logs.

In conclusion, the Pakistani government's decision to classify wood as an essential item has provided some relief for the wood market. However, the challenges of obtaining financing and conducting transactions remain. As the situation continues to evolve, it will be important for stakeholders in the industry to adapt and find innovative solutions to meet the needs of their customers.

Post comment