The business community in Faisalabad, especially the textile sector, is facing a host of challenges in harnessing the advantages unfolded by the recent depreciation of US dollar against Pakistani rupee. Despite strong position of the rupee, millers, exporters, and even ordinary traders are struggling hard to procure raw materials. They said the government lacks a mechanism to bridle the trend of hoarding and profiteering due to which raw materials are sold at the rates when the dollar was robust. WealthPK reached out to the entrepreneurs and traders to know the factors denying them the opportunity to benefit from the strengthening rupee. Talking to WealthPK, Murtaza Ali, who purchases material from a textile mill, said news channels daily reported that the rupee was gaining strength but they were unable to benefit from this situation. He said the prices of raw materials were still the same as they were when the US dollar rate was trading ahead of the rupee, biting chunks off the rupee.

He said the government lacks a mechanism to keep an eye on the hoarders and profiteers and suggested the launch of an application to receive public opinion and their complaints about the price hike. With the help of this application, he said the government would come to know about the rates of raw material and how unscrupulous elements are making the life of everyone miserable. Negative elements not only create problems for the masses but also hit business activities manifold, he said, adding when the industry would not work, it would ultimately lead to unemployment.

Former chairman of the Pakistan Hosiery Exporters and Manufacturers Association (PHMA) Salamat Ali said that people perceive that exporters strike it rich when the US dollar appreciates but the situation is altogether different in Pakistan. He said, “We are not direct beneficiaries of a robust US dollar, rather being manufacturers and exporters, we are facing a double-edged sword. The fluctuating rate of the dollar is hitting our businesses manifold and we can’t submit rates to our foreign buyers.” He said dollar and fuel prices were declining but the prices of electricity and gas were surging with each passing day. “In such circumstances, how can we calculate rates when nothing is stable and uncertainty prevails?”

The former PHMA leader suggested that the government intervene and ensure availability of raw materials following the dollar depreciation. He said the raw material providers were looting the buyers with impunity. Another exporter said the textile sector was an economic cornerstone serving as a driver and reflector of Pakistan's financial health by fetching the much-needed forex and ensuring jobs for millions of people. He said they knew that the US dollar was daily losing its value but it was a misperception that the situation would make the Pakistani products valuable globally.

“Mostly, people think when the currency of a country loses its value, then its products are available at cheaper rates internationally. In my opinion, like currency, products also become less valuable,” he added. “We are already facing many challenges – both locally and internationally – finding a way to run our businesses smoothly but it looks like a distant dream, as we are not in a position to benefit from a depreciating dollar,” he said. Mudassar Islam, who deals in the printing material for textile exporters, said raw material rates like ink, paper, plates and plastic bags were high and his buyers were aggravating the situation by delaying payments. He said it was very difficult these days to run a business smoothly due to the uncontrolled inflation. The people at the helm seem to have nothing to do with the public and businesses, which is why the profiteers are exploiting everyone without any fear, he added.

Credit: Independent News Pakistan (INP)