SME RICE EXPORTERS SEND SOS TO SBP GOVERNOR

The Union of Small and Medium Enterprises (UNISAME) has invited the attention of Raza Baqir governor State Bank of Pakistan to the turmoil and losses faced by the SME rice exporters due to cancellation of orders and non shipment of grains due to the pandemic of Coronavirus.
President UNISAME Zulfikar Thaver said the SME rice exporters booked forward foreign exchange in lieu of their orders and contracts with their overseas buyers but unfortunately the orders have been cancelled or lying in abeyance due to the Corona virus which has put every thing off gear.
Rupee was gaining strength and would have further improved but it started depreciating unexpectedly due to fall in exports and withdrawal of hot money and the SME rice exporters who had booked the US Dollar at around Rs 157 to Rs 160 in anticipation to remain competitive are now being made liable to suffer at the current rate to settle the deal.
Thaver quoted the foreign exchange manual , chapter 4, clause 12- sub clause wherein the SBP reserves the right to direct under the Foreign Exchange Regulation Act 1947 to close at the rate ruling on the day on which they were booked or on any other day within the currency of the contract at its discretion and not necessarily at the rates ruling on which they are closed out.
UNISAME Council has urged the governor SBP to consider the request of the Rice Exporters Association of Pakistan (REAP) submitted by Rafique Suleman former chairman REAP to bail out the rice exporters who rightly deserve help and support from SBP. It is pertinent to note that the rice sector is the second largest exporter and has never been given any subsidy and was not even included in the five 0 rated sectors. Majority of the exporters are SMEs.
The SBP has stood by the business community like a rock and its recent schemes to combat the economic crisis is commendable. The friendly policies of the SBP for the big and small are remarkable and under its National Financial Inclusion Strategy (NFIS) it has made best efforts to include every segment of the society.
UNISAME has urged Raza Baqir governor SBP to give a patient hearing to REAP delegates and save the SME rice exporters from being wiped out.

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