As the dollar gets cheaper the government exporters have serious reservations

Currency dealers and experts in the interbank market say the government does not want the dollar to depreciate further against the rupee as it affects both imports and exports. According to a report by Dawn newspaper, the dollar has fallen to a 5-month low against the rupee, which has raised concerns among exporters, while the government fears that a cheap dollar could lead to an increase in imports, which could lead to a rise in imports and exports. May upset the balance between exports.

AS The Dollar Gets Cheaper The Government, Exporters Have Serious Reservations

It should be noted that governments in Pakistan are bound to follow the instructions of the IMF as they need financial support to run the economy. “We are already under pressure due to the highest interest rate of 22 percent, making the cost of doing business the highest in the region,” said Amir Aziz, an exporter of finished textile products.

As the dollar gets cheaper the government exporters have serious reservations

He cited record hikes in electricity, gas and petroleum prices along with a 22 percent interest rate that has left exporters unable to compete in global markets. “The impact of the high cost of production will be significant and the impact will be felt in the next 12 months as we are currently fulfilling back orders,” he said.

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The country has been able to reduce the trade deficit while the current account deficit remained at around $1 billion in 7 months, which is a significant achievement for a country that has to repay up to $24 billion in debt in fiscal year 2024. Although a stable exchange rate has failed to attract foreign investment, it has provided confidence to stakeholders in the economy and helped exporters sell their exports. Export earnings created dollar liquidity in the banking market and helped stabilize the market.

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