LAHORE-The zigzag exchange policy against rupee has created historical chaos to export sector, as they sold future production at dollar value of Rs108 per dollar and consignments sent on 180 days credit basis are realized at $96.5 per dollar causing loss of 10% to 12%.
Due to rapid appreciation of dollar from Rs98 to Rs110 during the month of December many exporters made forwarding booking arrangements of imported raw materials and with sudden drop of Rs14 per dollar i.e. Rs110 and Rs96 these imported consignments have further added insult to the injury and exchange policy of the government proved double edged sward for exporters .
They said exporters cannot survive on this uneven exchange policy and government needs to announce Export Support Fund from 6% to 10% to save exporters . They said that irreparable loss to the exporters can have long term repercussion and will adversely affect our Balance of Trade & Balance of Payments. They further added that the government should immediately have emergent meeting with all export sectors to address this serious issue.
”Our competing countries are in a better position to capture market share lost by Pakistani exporters . The government has failed to take into confidence exporters before devaluation of dollar which if necessary should have been reduced steadily over a period of time,” observed Agha Saiddain, Regional chairman of FPCCI standing committee on leather sector. He said that despite the fact that foreign exchange reserves have not increased and all economic indicators are steady there seems no reason for this artificial increase in value of Rupee. However, he added the government needs to pay serious attention to the disaster caused to exporter and its long term effects.
Pakistan Tanners Association central chairman Sheikh Saqib Masood said that no country can survive on borrowings and exports are the only remedy for economic growth. He observed that damaging export sectors just for the sake of some grants, donations or bonds is not wise. He further added that due to weak dollar exporters have received no relief in electricity and fuel bills. The government has not passed any such relief to the exporters , he lamented.
Sheikh Saqib said that the electricity bills have been increased despite the fact that our thermal power stations are running on imported oil which obviously is now cheaper due to weak dollar . PTA chairman said the difference of Rs3 per dollar between Inter Bank Rate and Open Market Rate may cause depletion of foreign exchange reserves which are already very meager.
Major Akhtar Cooki, Chairman Pakistan Carpet Manufacturers and Exporters Association, said that the exporters may bring part of their foreign exchange through money changers causing reduction in export figures and foreign exchange reserves. The calamity hit exporter sector need immediate attention of Prime Minister of Pakistan, he added.