There is need to set up body to oversee implementation of policies formulated: Nasir Hameed Khan
LAHORE: Among many other reasons the decline in exports has also taken place due to inordinate delays in refunds and rebates which compels businessmen to borrow which, in turn, raises their input costs relative to their foreign competitors. It seems there is no stopping the export side as exports have been constantly falling and have come down in the last four years. On the other hand, Bangladeshi and Indian exports are booming.
These views were expressed by Lahore Chamber of Commerce and industry Vice President Nair Hameed Khan while talking to Customs Today here the other day. He said that as is well known, a major reason for the continued decline in our exports is the ongoing recession in global commodity prices, affecting the bulk of our exports. But there are other factors involved in the situation.
He attributed the decline in exports to inordinate delays in refunds and rebates that compels them to borrow which, in turn, raises their input costs relative to their foreign competitors. Another reason is an overvalued rupee that acts as a disincentive for our foreign buyers by making our products non-competitive in the international market.
He added that the government policy of keeping the value of the rupee fixed against the US dollar for the last few years is counter-productive.
The dollar has risen in value against all major currencies of the world. Almost all the major currencies of the world have depreciated over the last four years, he said adding that the British pound, the Euro, the Yen and the Yuan have all depreciated against the dollar by ten to twenty percent.
The Pakistan rupee has stayed at around 104/5 per US dollar while in a world where almost all developing states consciously hold down the value of their currency to help export led growth, we do just the opposite which led exports to fall, the LCCI VP said.
“Our failure on the export front is not entirely economic. The security perception is also to blame. Pakistan is considered a dangerous place to travel to and an unstable trading partner.
“Reportedly, many large store groups have made it a company policy not to buy from Pakistan and have instructed their buyers accordingly. Many large retailers in the West have issued directives to their staff to avoid trading with Pakistan,” he explained.
An unfortunate perception has been built up that Pakistani manufacturers and suppliers will not be able to live up to their commitments due to the endless power cut, gas shortages, bomb blasts, and the threat of civil unrest to disrupt the supply chain, the LCCI informed.
He said that all these problems need to be tackled. Exports can only be increased by a combination of prudent policy intervention and entrepreneurial skills on the part of exporters.
There is need to set up an effective and powerful body to oversee and monitor implementation of policies formulated from time to time, Nasir Hameed concluded as saying.
