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Lahore, April 14, 2014 (PPI-OT): Following is the text of press release issued by Pakistan Carpet Manufacturers and Exporters Association
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The zig zag exchange policy against rupee has created historical chaos to export sector. The exporters sold future production at dollar value of Rs 108 per dollar and consignments sent on 180 days credit basis are realized at US$ 96.50 per dollar causing loss of 10% to 12%.
Due to rapid appreciation of dollar from Rs. 98 to Rs. 110 during the month of December many exporters made forwarding booking arrangements of imported raw materials and with sudden drop of Rs. 14 per dollar i.e. Rs. 110 and Rs. 96 these imported consignments have further added insult to the injury and exchange policy of the government proved double edged sward for exporters.
This was said by Agha Saiddain Regional Chairman of Leather Sector FPCCI and Mr. Major Akhtar Cooki Chairman Pakistan Carpet Manufacturers and Exporters Association in joint Press Conference at Lahore.
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 and 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. 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 they added government need to pay serious attention to the disaster caused to exporter and its long term effects. They said no country can survive on borrowings and exports are the only remedy for economic growth. Damaging Export Sectors due to some grants, donations or bonds is not wise. They 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. 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. They said the difference of Rs. 3.00 per dollar between Inter Bank Rate and Open Market Rate may cause depletion of foreign exchange reserves which are already very meager.
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.
For more information, contact:
Muhammad Riaz
Pakistan Carpet Manufacturers and Exporters Association
1st Floor, CTI Building, 27-Empress Road
Lahore – Pakistan
Ph: – 0092-42-36366272- 36373947
Fax:-0092-42-36305296
Email: – pcmeaa@gmail.com
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