President Lasbela Chamber of Commerce and Industry (LCCI), Yakoob H Karim, has urged the Governor State Bank of Pakistan (SBP) to fix export refinance rate to at least KIBOR-3 (5.5pc) in the greater national interest and to save our exports from total collapse. Karim said that export refinance rate at one percent less KIBOR (7.5pc) is too much for export industry as compared to Vietnam, Bangladesh, India and China as they all have far less refinance rates than Pakistan.
He said that due to frequent increases in the tariffs of utilities and industrial inputs' cost the exporters have become uncompetitive in international market and the finally high rates of export refinance have totally squeezed their profit margins due to which they are unable to negotiate orders with their foreign buyers.
He said the main blow given to them by the strengthening Pak rupee against dollar as US dollar's value has been dropped to a significant level due to which exporters' income is shrinking so fast. He said that it's high time for the country to reduce export refinance to at least 5.5 percent for the sake of earning precious foreign exchange and for exporters to be able to continue their business. He demanded of the central bank to fix export refinance at KIBOR-3 instead of KIBOR -1 due to extreme circumstances and depleting value of dollar against Pak rupee.
Comments
Comments are closed.