Sialkot, February 15, 2023 (PPI-OT):Mr. Abdul Ghafoor Malik, President of Sialkot Chamber, in a statement given to the press has expressed his deep concern over the recently amended procedures for the realization of Export Proceeds through the EPD Circular No. 01 of 2023 dated February 13, 2023. Under the new circular, from March 01, 2023, onwards, the gain on the exchange upon realization of overdue proceeds would be transferred to a separate account and the matter would be forwarded to Foreign Exchange Adjudication Department (FEAD), with respect to the delay in realization of export proceeds.

The President said that the move would disrupt the export sector as the slight leverage available to the Export Sector through gains in Exchange Conversion would be taken away from the Government. He was of the view that overnight changes in policies only create uncertainty and offer zero gains at the macroeconomic level. “Such policy shifts ought to be taken through due deliberation and consensus” Mr. Abdul Ghafoor Malik added.

Mr. Malik expressed his fear after consultation with all stakeholders that exporters having overdue proceeds with genuine reasons would be subjected to stern regulatory actions under the new procedures. He said that many exporters had pending realization due to various reasons including but not limited to delays by the clients due to various reasons, and the post-pandemic global economic recession.

The President Chamber believed that policymakers did not give due consideration to such ramifications that would ultimately be faced by the exporters of Pakistan. He said that the prevalent scenario merited the credit-based offerings to international clientage to sustain the orders. Mr. Malik said that there was cut-throat competition in international markets and the competitors of Pakistan had been eyeing to grab the market share from the export sector of Pakistan.

The President Chamber stressed that the State Bank of Pakistan should review its decision and involve all the private sector stakeholders to devise a mechanism to manage the foreign exchange crisis instead of issuing such draconian policies in a hasty manner. Mr. Abdul Ghafoor Malik added that the Government had been most supportive of the Export Sector and was keen to take positive steps for the promotion of exports but such a drastic decision, made in a haste, would only result in discouraging the exporters. He appealed to the Prime Minister and the Finance Minister to intervene in the larger national interest for the withdrawal of the circular.

For more information, contact:
Sialkot Chamber of Commerce and Industry (SCCI)
Shahrah-e-Aiwan-e-Sanat-o-Tijarat, Sialkot – 51310, Pakistan
Phone: +92-52-4261881-3
Fax: +92-52-4268835, +92-52-4267919
E-mail: sialkot@scci.com.pk
Website: http://www.scci.com.pk