Revaluation in Pakistan exchange rate to cause adverse effect on export revenue

Pakistan exchange rate see a sudden 12 percent revaluation of the rupee from 108 to 96 a dollar will is likely to cause an adverse effect on export revenue. The value-added textile industry is concern over this and urged for government support to even out this negative effects of sudden appreciation of the exchange rate on their revenues.

While, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has demand to put in place a system which will support the exporters from the negative impact of rupee revaluation on their tight liquidity.

According to the Towel Manufacturers Association of Pakistan, due to the revaluation of rupee, on the cost side the benefits may begin to flow in six months later but these benefits will be not more than 2-3percent in comparison to the immediate loss of 12percent that the industry will incur on the turnover which will wreck the industry in six months.

Moreover, there is a drop by 4-5 percent in the yarn prices and a number of spinning mills are contemplating to shutting down or shift their production to polyester from cotton.

The government needs to act on reducing the price of electricity, gas and oils by 12percent and interest rate to help cut the financial burden on exporters.

Pakistan government need to act fast on the sudden appreciation of exchange rate.

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