PEW criticized textile sector for demanding devaluation of currency

Lahore: The Pakistan Economy Watch (PEW) on Sunday criticised textile sector for demanding devaluation of local currency to boost exports.

Eroded rupee to make imports costly which are double than exports and hut every person in Pakistan, it said. The government has accorded zero-rating status to the textile sector in the budget, reduced export refinance rate by 0.5 percent and promised to pay refunds but the textile millers are asking for more which is unjustified, said Dr. Murtaza Mughal, President PEW.

He said that devaluation of the currency to spur exports is an old-fashioned idea which is contrary to the national interests therefore government should refuse the demand. Exchange rate erosion provides little relief to exporters while it increases debt, payable interest and make imports costly he said, adding that exports should be increased by reforms.

Dr. Murtaza Mughal said that dollar was worth Rs60 during Musharraf’s regime that has now depreciated to Rs 104.50 but the exports remain stagnant, rather dwindled.  Dollar appreciated by Rs 5 recently but exports didn’t improved, rather nosedived which proves that the demand holds no water, he added. Government should try 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. Export sector remain focused on low-value and commodity based products while officials concerned have always ignored to fix the structural flaws. Interests of whole population cannot be sacrificed to provide temporary relief to some exporters through exchange rate adjustment as it will increase debt burden by billions of rupees.