Senior Vice President, Karachi Chamber of Commerce and Industry (KCCI) Iftikhar Ahmed Shaikh has expressed concern over the increasing trade deficit and urged the government to take appropriate measure to control declining exports.
Taking to Business Recorder, he said that the surging trade deficit is also both directly and indirectly related to the consumption of imported materials in almost all the exported products of Pakistan.
Referring to the sliding of the rupee against the dollar, the KCCI leader said that Pakistan's export trade is largely dependent on imported raw materials and components, adding that the depreciation of the rupee against the dollar directly hit the prices of imported raw materials and ultimately production costs.
About the recent intervention of the State Bank of Pakistan (SBP), he said that with the intervention of SBP, the rupees has been strengthen but has failed to gain strength to the degree expected. It is therefore imperative, Shaikh said, that SBP should take measures in such a manner that the rupee will be further strengthen.
Commenting on gas and power tariffs, he said that the government has already increased gas tariffs by 68 percent for captive power generation and by 31 percent for other uses, which will have a very drastic impact on the cost of production.
When asked about supporting strike calls given by textile sector, Shaikh said that negotiations with the federal Commerce Minister are in progress in Islamabad with representatives of the textile sector adding that the industry should wait and see the outcome of the negotiations.
The KCCI SVP hoped that the government would revise gas and power tariffs downward to keep the wheels of industry moving. He admitted that oil prices had gone up tremendously in the international market but added that the government should take steps to absorb them to keep industries running.
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