LAHORE: The value-added textile industry on Monday demanded government support to offset the adverse effects of sudden appreciation of the exchange rate on their revenues. It said the sudden 12 per cent revaluation of the rupee from Rs108 a dollar to Rs96 would wreak the value-added exports.

In a statement, Tahir Jahangir, chairman of the Towel Manufacturers Association of Pakistan, said, “On the cost side the benefits may begin to trickle in six months later. These benefits are nowhere more than 2-3pc at best. An immediate loss of 12pc on turnover will ruin the industry in six months. While the losses are clear and need no explanation the benefits are not so easy to quantify.”

He said yarn prices had fallen 4-5pc and a number of spinning mills were thinking of shutting down or shifting to polyester from cotton.

On energy prices, he said the government should reduce the price of electricity, gas and oils by 12pc and interest rate to help reduce the financial burden on exporters.

He said China had refused to appreciate its currency drastically despite demand from its trading partners.

Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) leader Ijaz Khokhar also called for putting in place a mechanism to shield the exporters from the negative impact of rupee revaluation on their tight liquidity. —Staff Reporter