PBIF: Rupee devaluation an outdated idea
The dollar appreciated Rs5 recently, but again exports did not improve, rather nosedived
PHOTO: REUTERS/FILE
ISLAMABAD:
The devaluation of currency to spur exports is an outdated idea, contrary to the national interest, declared Pakistan Businessmen and Intellectuals Forum (PBIF) President Mian Zahid Hussain.
“One dollar was worth Rs60 during the Musharraf’s government and it stood at Rs105 during the PPP’s administration, but exports remained stagnant. The dollar appreciated Rs5 recently, but again exports did not improve, rather nosedived; that proves the point.” He was of the view that semi-literate export managers had never tried to tackle weaknesses in manufacturing, energy production, tax policy, brand development and product diversification.
Published in The Express Tribune, February 23rd, 2016.
The devaluation of currency to spur exports is an outdated idea, contrary to the national interest, declared Pakistan Businessmen and Intellectuals Forum (PBIF) President Mian Zahid Hussain.
“Exchange rate weakness provides little relief to exporters while it increases debt, payable interest and make imports costly,” he said and added exports could be increased through difficult decisions, reforms and disciplinary action against the responsible authorities.
The demand of export managers for devaluation of the rupee was nothing but an attempt to camouflage their inefficiency, he said.
“One dollar was worth Rs60 during the Musharraf’s government and it stood at Rs105 during the PPP’s administration, but exports remained stagnant. The dollar appreciated Rs5 recently, but again exports did not improve, rather nosedived; that proves the point.” He was of the view that semi-literate export managers had never tried to tackle weaknesses in manufacturing, energy production, tax policy, brand development and product diversification.
Published in The Express Tribune, February 23rd, 2016.