KARACHI: Sharp increase in rupee value has created serious issues for the export-oriented industry and Finance Minister Ishaq Dar should look into it, said Trade Development Authority of Pakistan (TDAP) Chief Executive S M Muneer.

Speaking at a luncheon meeting, organised by All Pakistan Textile Mills Association (Aptma) on Tuesday, he said if issues such as stuck up refunds, power and gas shortages confronted by the industry were not sorted out the country’s exports could not be increased.

Around Rs10 to Rs12 billion was held by the Federal Board of Revenue (FBR) against sales tax and customs rebate causing severe liquidity problems for exporters.

Muneer said he planned to increase the country’s exports to $50bn in next three years but if these issues were not resolved there was no possibility of achieving this target.

The TDAP chief said he would suggest to the government to ask China to remove 3.5 per cent import duty on yarn and fabric imports from Pakistan.

Aptma Chairman Yasin Siddik said in last few weeks the dollar had depreciated by 12 to 14 per cent against the rupee badly hitting the entire textile industry and its export earnings.

He added that the textile industry alone suffered around Rs300 million losses on cotton inventory which was purchased at around Rs7,000 per maund, but the price has now come down to Rs6,000 per maund. “Out of 400 spinning mills 65 to 70 units have closed down in last 15 days due to severe financial crisis and rapid appreciation in the rupee value,” he informed the meeting.