Woes: APTMA demands 10% rebate due to rupee appreciation

Published: April 16, 2014
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The sudden surge of around 12-15% in rupee value against the dollar has disturbed the business cycle of textile exporters who get export payments after a lag of 90-120 days. PHOTO: EXPRESS/FILE

The sudden surge of around 12-15% in rupee value against the dollar has disturbed the business cycle of textile exporters who get export payments after a lag of 90-120 days. PHOTO: EXPRESS/FILE

KARACHI: The All Pakistan Textile Mills Association (APTMA) has urged the government to pay 10% rebate to textile exporters to shield themselves from the inventory losses they have incurred due to the fast appreciation of the Pakistan rupee against the US dollar.

“We want the government to tell us where exactly the rupee is going to stabilise against the dollar,” said APTMA Chairman Yasin Siddik. “Textile exporters have already faced the brunt of $300 million in exchange rate losses and huge cotton inventories,” Siddk added.

He was speaking at a press conference at the APTMA House in the presence of the Trade Development Authority of Pakistan (TDAP) Chief Executive S M Muneer.

“We just want the government to provide rebate on business deals textile exporters made during March-September 2013,” Siddik replied to a question.

The sudden surge of around 12-15% in rupee value against the dollar has disturbed the business cycle of textile exporters who get export payments after a lag of 90-120 days. Moreover, the rupee is still surging against the dollar, making exporters vulnerable to further losses if they make new business deals, Siddik added.

“When the dollar was appreciating against the rupee, the exporters were making small gains like 10-20 paisa per dollar. It was a slow and gradual process. However, the depreciation of the dollar was abrupt which is why it jolted the business cycle of exports,” Siddik answered when asked why exporters refrained from complaining when the rupee was depreciated from Rs100 to Rs107 per dollar.

Siddik and TDAP chief executive requested Finance Minister Ishaq Dar to immediately meet textile exporters and fix the rupee dollar parity to shield exporters from exchange losses.

Published in The Express Tribune, April 16th, 2014.

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Reader Comments (4)

  • Cobra Commander
    Apr 16, 2014 - 8:45AM

    Bunch of rent seekers and extortionists!! When the rupee falls these guys complain and want cash from government to offset some made up losses, rupee appreciates and these guys complain. Not a day passes when there isn’t a half page newspaper advert from APTMA asking for government help in some way or other. These guys are similar to panhandlers we find on the street asking for cash donation. Even when you flick your arm at them to go away they still stick to the car window asking for money and this is exactly the behavior of APTMA.

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  • HH
    Apr 16, 2014 - 9:32AM

    What when these textile exporters delay the receipt of export earnings in anticipation of exchange rate depreciation so that they can get more Rupees against Dollars?? This is the history of textile millers. They kept enjoying tax holidays, exemptions, rebates in the past and kept crying for more.

    And the funniest thing is that APTMA Chairman is asking the government to tell him “exactly” where the Rupee is going to stabilise! Does this idiot have a zero IQ level?Recommend

  • nomi
    Apr 16, 2014 - 1:46PM

    Inherently inefficient and uncompetitive, textile exporters have long bullied the Government to pay them monies so that they can get rich. It is the time I being a tax payer stand up and say no to this!

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  • optimist
    Apr 17, 2014 - 12:16AM

    Fair play… Let’s give them rebate and also ask for money back for the time when they gained and delayed.
    .
    Ishaq Dar gave them a long warning. It was them who didn’t pay heed and kept their dollars outside the country.

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