KHURRAM DASTAGIR URGED TO SUMMON EXPORTERS FOR STRATEGY

The Union of Small and Medium Enterprises (UNISAME) has invited the attention of Khurram Dastagir federal commerce minister to the lull in exports of major foreign exchange earning items due to the unfavourable exchange rate and have urged him to take positive steps to enable SME exporters remain competitive amidst challenges.

President UNISAME Zulfikar Thaver said SME exporters have taken a back seat and not negotiating business due to uncertainty in future exchange rate and they are not sure about the proceeds. Most of the SME exporters had not booked exchange in advance as the trend of the dollar was high which resulted in huge losses.However some of the big exporters had booked their exchange due to inside information and knowledge of the government plans.

He said the exporters had to offset their losses against earlier gains but are now not prepared to suffer anymore and desire fixation of favourable rate for exports or export bonus of about 8% for goods exported by them to cover the high cost of production due to inflation.

Thaver said it is strange that the ministry of commerce has not realized that the exports are at standstill and this will reflect badly on growth and the balance of payments in the coming months. The exports which are taking place currently are only shipments of earlier contracts which the shippers are respecting but coming months will surely show a dip in figures.

The exporters of textiles which comprise about 60% of exports followed by rice, maize, commodities are unable to ship at the present rate devoid of any subsidy and are waiting for the importers to buy at the enhanced rate which is made difficult by our neighbour who is desperate to capture markets lost by us.

UNISAME has urged the minister to summon an urgent meeting of exporters and understand their issues and resolve a strategy to overcome the uncompetitiveness of our industry due to the appreciation of the rupee.

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