KARACHI - Export-oriented industry has demanded of the central bank to fix Export Refinance at KIBOR-3 instead of KIBOR -1 due to extreme circumstances and depleting value of dollar against Pak rupee.

In a statement, President Lasbela Chamber of Commerce and Industry (LCCI) Yakoob H Karim said that Export Refinance rate at one per cent less KIBOR (7.5pc) is too much for export industry as compared to Pakistan’s competitors particularly Vietnam, Bangladesh, India and China as they all have far less refinance rates than Pakistan.

He said that due to frequent increases in the tariffs of utilities and industrial inputs’ cost the exporters in Pakistan have become uncompetitive in international market and finally the high rates of Export Refinance have totally squeezed their profit margins due to which they are unable to negotiate orders with their foreign buyers.  He said that the main blow given to them by strengthening Pak rupee against dollar as US dollar’s value has been dropped to a significant level due to which exporters’ income is shrinking so fast.  Yakoob said that high rate of export refinance has rendered uncompetitive Pakistan with Vietnam, Bangladesh, Sri Lanka, China and even India and its export share in the global market is shrinking fast as well.

He said that it’s high time for the country to reduce Export Refinance to at least 5.5pc for the sake of earning precious foreign exchange and for exporters to be able to continue their business.

He earnestly appealed to the Governor State Bank of Pakistan (SBP) to fix Export Refinance rate to at least KIBOR-3 (5.5pc) in the greater national interest and to save our exports from total collapse.