Devaluation to spur exports an outdated idea: Mian Zahid Hussain

Lahore: Pakistan Businessmen and Intellectuals Forum (PBIF) President Mian Zahid Hussain on Monday said devaluation of the currency to spur exports is an outdated idea which is contrary to the national interests.

Exchange rate erosion provides little relief to exporters while it increases debt, payable interest and make imports costly therefore it is not advisable, it said.

Exports can be increased by difficult decisions, reforms and disciplinary action against responsible authorities as demand by the export managers to devalue rupee is nothing but an attempt to camouflage their inefficiency, said Mian Zahid Hussain, President PBIF, AKIA and First Vice Chairman of the Businessmen Panel of FPCCI.

In a statement issued here today, he said that one dollar was worth Rs60 during Musharraf’s regime that depreciated to Rs 105 during PPP’s government but exports remain stagnant.Dollar appreciated by Rs 5 recently but exports didn’t improved, rather nosedived which proves the point, he added.

Mian Zahid Hussain said that semi-literate export managers have never tried to tackle weaknesses in manufacturing, energy crisis, taxation issues, policy hiccups, supply side constraints, non-existent R and D, value addition, brand development and diversification of product scope and markets.

Export sector remain focused on low-value and commodity based products while managers have always ignored structural flaws due to their interest in politics which has taken toll on economy and the masses.

The veteran business leader said that interests of whole population cannot be sacrificed to provide temporary relief to some exports through exchange rate adjustment as it will increase debt burden by billions of rupees.