Rupee shouldn’t be devalued on demand of textile sector:PEW

Lahore: The Pakistan Economy Watch (PEW) on Sunday said Pakistani exports have not dwindled down overnight expanding trade gap.

Favouritism, appointments in violation of merit and misuse of export incentives are to be blamed for the situation, it said.

Situation will not change unless appointments are made strictly on merit, outdated elements are removed and those behind the drop should be held responsible, said Dr. Murtaza Mughal, President PEW.

In a statement issued here today, he said that increasing cost of doing business, energy crisis and non-payment of refunds by FBR has also played it role in hurting exports.

Policymakers are too much focused on textile sector for exports while other sectors and textile value addition have been put on the backburner which is limiting Pakistan’s capability to benefit from GSP plus status.

Dr. Murtaza Mughal said that textile sector is focused on European market only, they should also try to explore other markets and alter their strategy according to changing scenario.

He said that textile sector should stop asking governed to devalue currency as the competing countries including India and Bangladesh have not devalued their currencies to boost exports.

Rather, the competitors have taken meaningful measures to increase their export share which Pakistan can follow, he suggested.

He asked the government to focus on exports to increase income and avoid preferring indirect taxation, unprecedented taxes on imported fuel, privatization, loans and grants to change the dismal situation.