FAISALABAD: Faisalabad Chamber of Commerce and Industry (FCCI) Senior Vice President Syed Zia Alamdar Hussain expressed concerns over the loss that would be inflicted on Pakistani exporters due to the drastic devaluation of the pound sterling and euro in the wake of Britain’s exit from the European Union (EU).
“The value of the British pound dipped to Rs144.01 after the Brexit announcement. Similarly, the euro also fell from Rs118 to Rs115.42,” he said, adding that other currencies have also depreciated.
He said Pakistan had artificially capped the dollar at Rs105 whereas its value in the open market was calculated around Rs117.
“Pakistani exports to Britain in 2014-15 stood at $1.65 billion. If these exports are converted into pounds, it would cause losses in billion, to be borne by Pakistani exporters alone,” said Hussain.
He said UK is one of the biggest trading partners of Pakistan.
“Now Pakistan cannot make duty-free exports to UK which would have a direct negative impact on Pakistan’s exports. The government and concerned departments should immediately conduct an impartial survey to determine the possible economic loss to Pakistan due to the fast changing economic and political scenario in Europe after the separation of UK from the EU.”
He also asked Pakistani think tanks to recommend immediate relief measures to save the country’s exports from financial losses, in addition to checking the declining trade in exports.
Published in The Express Tribune, June 26th, 2016.