Revaluation in Pakistan exchange rate to cause adverse effect on export revenue

Pakistan exchange rate see a sudden 12 percent revaluation of the rupee from 108 to 96 a dollar will is likely to cause an adverse effect on export revenue. The value-added textile industry is concern over this and urged for government support to even out this negative effects of sudden appreciation of the exchange rate on their revenues.

While, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has demand to put in place a system which will support the exporters from the negative impact of rupee revaluation on their tight liquidity.

According to the Towel Manufacturers Association of Pakistan, due to the revaluation of rupee, on the cost side the benefits may begin to flow in six months later but these benefits will be not more than 2-3percent in comparison to the immediate loss of 12percent that the industry will incur on the turnover which will wreck the industry in six months.

Moreover, there is a drop by 4-5 percent in the yarn prices and a number of spinning mills are contemplating to shutting down or shift their production to polyester from cotton.

The government needs to act on reducing the price of electricity, gas and oils by 12percent and interest rate to help cut the financial burden on exporters.

Pakistan government need to act fast on the sudden appreciation of exchange rate.

Recent Posts

Gebrüder Otto, ITA Augsburg develop towels with 50% recycled fiber

Gebrüder Otto has partnered with the Recycling Atelier at ITA Augsburg to create cotton towels using yarns made from 50%…

20 hours ago

Scientists develop silk threads, turning clothing into power sources

Scientists have found a way to turn textiles into energy sources by creating a unique silk thread coated with a…

20 hours ago

The LYCRA Company launches LYCRA TOP COMFORT fiber

The LYCRA Company has introduced its newest advancement for pantyhose waistbands, called LYCRA® TOP COMFORT fiber.

20 hours ago

Lenzing Nonwovens expands LENZING lyocell dry fiber line

Lenzing Nonwovens has expanded its LENZING Lyocell Dry fiber range with two new cellulosic fibers: a fine dry fiber and…

2 days ago

Avery Dennison unveils Optica for supply chain transparency

Digital identification expert Avery Dennison has launched a new platform designed to increase transparency across brand and manufacturing supply chains.

2 days ago

Aware and Baichuan Resources partner for textile transparency

Traceability platform provider Aware has announced a collaboration with Baichuan Resources Recycling, a leader in recycled polyester, yarn, and fabric…

2 days ago