PTA calls for stable exchange rate

LAHORE: Pakistan Tanners Association (PTA) on Thursday asked the government and State Bank of Pakistan (SBP) to ensure consistent stable exchange rate of the dollar, saying volatility and fluctuation had adversely affected the exporting sector.

The dollar dropped by Rs10.71 in last four days. On September 23, the dollar at interbank was Rs239.75 and on September 29, it dropped to Rs 229. “These exporters are confused with the prevailing circumstances of exchange rate and upset as how to offer prices to their customers," former chairman PTA Agha Saiddain said.

Saiddain believed that the fluctuation would cause serious damage to the exporters who already sell at very thin margins due to global recession. No exporter could sell smoothly in the turbulence of exchange rate, he added.

He stated that the cost of doing business had jumped on an increase in energy cost and minimum wages. “We have lost level playing field with our competing countries, and we understand slight fluctuation like Indian rupee, but in our country the trend is zig zag and damaging to our exporters.” He lamented that that the country was facing current account deficit and a decline in exports would be disastrous to the economy. To minimize trade balance, he continued, the country needed to boost export and bring policies, which happen to be export friendly. The former PTA chief urged the new finance minister of the country to take export friendly measures.