SBP thanked for 10 percent retention scheme, urged inclusion of DVS in Plan B

KARACHI: The Union of Small and Medium Enterprises (UNISAME) in response to the demand of the business community for plan B reiterated that definitely the government needs to realise that the foreign exchange for import bills is hardly sufficient for few weeks and without imports the exports will also suffer as the industrial units will not have the required raw material, says a Press release, says a Press release.
Secondly due to reduced imports the containers have also become scarce which are used to stuff exports cargo so there is multiple effect due to shortage of containers the freight rates will go up and the costing will go up said Hussain Ali convener logistics UNISAME. He said it is a vicious circle and needs immediate facilitation for essential imports.
Shoaib Rauf member UNISAME Council said It is pertinent to note that the IMF loan is just 1 billion whereas the home remittances are 2.5 billion every month and it is our life line and needs to be promoted with incentive.
Abdul Rauf Abdul Aziz convener Trade Facilitation Committee UNISAME said we gave the government a proposal to give the beneficiaries of home remittances dollar vouchers which can be sold in open market and the importers can buy it for their imports in this manner the hawala business will be reduced as the beneficiaries will get the benefit of open market rate and a proper official channel.
President UNISAME Zulfikar Thaver said we are thankful to State Bank of Pakistan (SBP) for allowing a 10% retention to exporters and this 10% of the export proceeds can be used for imports but the question is that what about those who do not export. For this reason we have asked the government to launch the Dollar voucher scheme.
Secondly the government will have to befriend the countries who could help. Why the government is not contacting Japan as for many years Pakistan has at the cost of its own industry patronized the automobile industries of Japan and now that Pakistan needs loans Japan is not offering help.
Shaukat Ali said we are preparing a proposal for the Dollar Voucher Scheme (DVS) for submission after Eid holidays to Dr Asif Ali who is the Director Exchange Policy Department (EPD) SBP in the best interest of the SME sector which is in jeopardy due to reduced imports and hope the proposal will be accepted on merit forthwith.