'Raise in refinance rate would have serious setback for export sector'

The government's decisions including withdrawal of business friendly policies and increase in the refinance rate to 11 percent would have serious set back for the country's export sector. The government has withdrawn all export friendly policies from January 1, 2011, which would adversely impact the country's economy.
Besides, the increase in the refinance rate to 11 percent would deprive the exporters of finance at cheaper rate which badly hit the country's exports, said, Pakistan Tanners Association former Chairman Agha Saiddain while talking to Business Recorder here Monday.
He said the economic managers must know importance of exports for the country that is facing huge trade deficit and current account deficit as well. During the year 2009-10, Pakistan paid 4.38 percent extra amount against foreign debt servicing in terms of Pak rupees due to devaluation of local currency. On the other hand, the dollar earned through exports has not to be returned, as it is earned through employment of local labour and by using indigenous raw material, he added.
The PTA former chairman further said the country had to bear an additional burden of 4.38 percent in term of local currency on account of debt servicing because of devaluation of Pak rupee. Any economic manager with sound understanding and vision would prefer to pass benefit equal to extra amount to the exports so as to enable them to earn more foreign exchange, besides generating employment which, in turn, could bring prosperity among the masses rather than paying such amount to the lending agencies, he maintained.
He was of the view that exports not only fetch $19-20 billion to the country but also provide jobs to millions of people of the country. "No prudent person can take such anti-economy decision in the present circumstance, particularly, when country needs to enhance exports to earn foreign exchange and generate employment to address historical unemployment in the country", he added. Secondly, the government has announced phenomenal price increase in petrol, high speed diesel, and other POL products which would hit all the sectors of our daily life in general and exports industry in particular.