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HomeBusinessPakistan Business Forum Urges 15% Export Rebate Amid Currency Challenges

Pakistan Business Forum Urges 15% Export Rebate Amid Currency Challenges

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The Pakistan Business Forum (PBF) is advocating for a substantial 15% export rebate for a year to bolster the nation’s export figures. According to PBF’s Vice President, Ahmad Jawad, this move aims to augment dollar inflows from exports and remittances, offering relief to the Pakistani Rupee, which has faced a significant devaluation, dropping by over 40% since 2022.

Jawad emphasized the necessity for a clearly defined rupee policy by the government to support traders and industries. He pointed out that a 15% tax refund could empower exporters to secure foreign exchange, allowing them to compete more vigorously with regional counterparts, notably citing Bangladesh as an example.

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Expressing concern over the Rupee’s continuous depreciation, Jawad highlighted that the current real effective exchange rate (REER) stands below Rs. 250/$. He attributed this ongoing depreciation cycle to speculative trading, regulatory oversights, and mismanagement in the forex market. He lamented Pakistan’s currency performance, noting it as one of the weakest in Asia since 2022.

Meanwhile, Muhammad Naseer Malik, the PBF Punjab chairman, underscored the challenge of acquiring external finance to counter foreign outflows. He mentioned that despite high yields, accessing the international Sukuk and Eurobond markets remained difficult due to prevailing conditions.

Read More: Today Currency Rates in Pakistan Nov 17, 2023

Daroo Khan Achakzai, the PBF Balochistan chairman, urged the government to prioritize strategies that would increase dollar inflows, ultimately reducing the current account deficit. He expressed astonishment at the current market volatility, highlighting unprecedented fluctuations in the money market.

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