ISLAMABAD: The Pakistan Economy Watch (PEW) has criticized textile sector for demanding devaluation of local currency to boost exports.
Criticising the demand the PEW said, "Eroded rupee will make imports costly which are double than exports and hit every person in Pakistan".
The government has accorded zero-rating status to the textile sector in the budget, reduced export refinance rate by 0.5 percent and promised to pay refunds but the textile millers still asking for more "which is not justified", Dr. Murtaza Mughal, President PEW said in a statement issued here on Monday.
Devaluation of the currency to boost exports was an old-fashioned idea which was basically contrary to the national interests therefore government should refuse the demand flately, he suggested.
Exchange rate erosion provides little relief to exporters while it increases debt, payable interest and make imports costly he said, adding that exports should be increased by reforms.
The government should try to tackle weaknesses in manufacturing, energy crisis, taxation issues, policy hiccups, supply side constraints, non-existent R and D, value addition, brand development and diversification, he advised.
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