The Pakistan Business Forum (PBF) has sought a 15 percent rebate on export orders for a year to help increase the country’s exports.
In a statement, the PBF said the government should focus on increasing dollar inflows from exports and remittances to relieve pressure on the PKR/$ which has lost over 40 percent value since 2022.
The government must announce a clear rupee policy to help traders and industries,” said PBF vice president and lead organizer Ahmad Jawad.
Jawad said a 15 percent tax refund for a year might assist exporters in obtaining foreign exchange and competing with regional rivals like Bangladesh. Jawad bemoaned the fact that Pakistan’s exports were dropping while Bangladesh was making the most of its export sector.
Overall, the PBF vice president expressed worry over the rupee’s depreciation, asserting that the current real effective exchange rate (REER) was less than Rs. 250/$ and that the current depreciation cycle was caused by speculative trading, a lack of regulatory oversight, and mismanagement of the forex market. He lamented that since 2022, the PKR has been one of the worst-performing currencies in Asia.
Meanwhile, PBF Punjab chairman Muhammad Naseer Malik stated that the main challenge was arranging external finance to meet foreign outflows. He opined that due to the current high yields, the international Sukuk and Eurobond market could not be tapped.
PBF Balochistan chairman Daroo Khan Achakzai said the government needed to focus on dollar inflows in order to reduce the current account deficit. He added that he had never witnessed the current level of volatility and fluctuation in the money market.