KARACHI: Exporters have expressed concern over the volatility in the money market saying that frequent fluctuation in the exchange rate is posing risk to the country's exports.
They said that the recent uncertain exchange rate and depreciation of the dollar against the rupee has created more difficulties for the exports, which are already facing tough time due to Covid-19.
Leading rice exporter Muzzammil Chappal said that Pakistani exporters have signed export agreements at Rs 166 to Rs 167 per dollar with their foreign buyers, while the value of dollar has now come down to Rs 162.50 due to continued fluctuation in the exchange rate. In this situation, it has become difficult for Pakistani exporters to fulfill their export contracts, which were signed at higher dollar rate, he added.
He said that fluctuations in the exchange rate will hurt exports as well as the national economy, which is in dire need of foreign exchange and exports are one of the major sources of foreign exchange earnings. At present exporters were not in a position to bear more losses, he maintained.
Chappal said exporters are already facing stiff competition in the world markets because of low demand in wake of Covid-19. "After witnessing downward trend during the Covid-19, the country's exports were gradually increasing, however, the recent volatility in exchange rate may hurt the export growth," he added.
He said that a stable exchange rate always helps boost the country's exports. He urged the State Bank of Pakistan to take measures to keep the exchange rate stable.
Copyright Business Recorder, 2020