KARACHI, Dec 24: The mounting tension in the areas bordering Pakistan and India has so far not rung alarm bells in importers community: it is business as usual for most of them — though the consumer items imported from India are becoming costlier.

“Importers by and large have a positive view of the economic fundamentals,” said the chairman of Pakistan Commodity Traders Association Raees Ashraf Tarmohammad. “Our reserves have risen; trade deficit coming down; Paris Club has rescheduled external debts; IMF has approved poverty growth and reduction facility — and the rupee is stable. Why then the importers should panic?”

Many based in Jodia Bazar — the centre of commercial importers — share this view. Former chairman of Pakistan Chemical & Dyes Merchants Association Amanullah Godil is one of them. Says he: “The reason why the importers have not panicked is that they know that the threat of war is not real — and our economic fundamentals are much stronger now than ever before.”

But he said that prices of consumer items imported from India may slightly move up. He is true. Indian polypropylene booked for December at $450 per ton is now being quoted at $460 and even more.

“The prices of Indian spices and herbal medicines are also up slightly showing,” says Raees Ashraf Tarmohammad. He names Kutch block (katha) and big cardamom as two such items: their prices have gone up by about 10 per cent in the past few days. Importers say prices of a variety of Indian consumer items — from cosmetics and toiletries to eatables like pickle and crackers; from shaving razors to shoe polish — have started inching up. Most such items are brought here under personal baggage scheme or even smuggled.

The calmness shown by the importers has helped the rupee keep up its hard-earned stability in the inter-bank market. Bankers say the rupee was faring well around 60.20/60.25 to a US dollar showing no weakness since India accelerated military movement on its borders with Pakistan.

“In fact supply of foreign exchange is so huge as compared to its demand that the SBP is constantly buying dollars from banks,” said treasurer of a state-run bank.

SBP $ BUYING: Sources close to SBP says the central bank has bought more than a billion dollar from the inter-bank market in less than three months. A central banker also confirmed that the SBP dollar buying has crossed $1 billion mark without disclosing the exact amount. “We started aggressive dollar buying from banks in October...and it continues — thanks to larger inflows of foreign exchange in the inter-bank market.”