The Lahore Chamber of Commerce & Industry says that the recent adoption of anti-export policies by the State Bank of Pakistan (SBP) poses a danger to at least halving the nation’s exports from their potential level (LCCI).
The SBP’s assertions that exporters are storing money overseas are wholly untrue, according to LCCI President Kashif Anwar, and are affecting the policies being developed. The LCCI has requested that the newly released Circular No. 02 of 2023, which addresses the realisation of export proceeds, be withdrawn on March 31, 2023.
Exporters from various industries, including meat, carpet, automotive, agricultural, leather, and textiles, expressed their disapproval of the SBP’s announcement, headed by the former president of the LCCI, Shahid Hassan Sheikh.
The president of the LCCI announced the formation of a committee of members from several exporting industries, which will provide recommendations and budgetary proposals for the SBP and other export-related ministries. The LCCI will then consult higher-level experts for their input on these recommendations.
Anwar emphasised the significance of product variety, shelf life, and other elements in deciding the timing of exports. The circular states that delays in bringing export proceeds into the nation will result in fines ranging from 3% to 9% on realised export proceeds, which will harm exporters already dealing with significant and multifaceted difficulties due to the increase in the cost of doing business. Anwar pointed out that this action is wholly unreasonable given the frequent delays in export earnings brought on by events beyond the control of exporters and that it would eventually affect how competitive Pakistan’s exports are on the global market.
He said, “How can they control imports when many industries import up to 50% of their raw materials?”
According to Anwar, having a single notification for value-added industries, perishable goods, and products with a long shelf life is unjust because exporting sectors have unique criteria. He continued by saying that other issues include the 21% interest rate and business people’s uncertainty about investing money in the stock market or keeping it in the bank to make a profit.
