Karachi: The Union of Small and Medium Enterprises (UNISAME) has said the import of goods has become very costly due to depreciation of rupee and government should reduce import duties on raw materials, medicines, auto parts and engineering goods to lower their landed cost to offset the impact of depreciation of rupee which is increasing cost of production and selling price of goods.
President UNISAME Zulfikar Thaver said Imports have become very costly due to the depreciation of the rupee and since import duties are levied on the rupee value the landed cost has increased substantially. The reduction in import duties will not affect the revenue collected because the import duty is levied on the invoice value converted in rupees at the exchange rate prevailing on the filing date of the bill of entry. The duty despite of being lowered will fetch the government almost the same amount due to the depreciated rupee.
He said the cost of production has made units uncompetitive and prices have increased beyond manageable limits of raw material, packing material, logistics, fuel, and other essential materials. Dollar has become a parallel currency in the country and is being purchased for security from the falling rupee. This is appreciating the dollar and depreciating the rupee
He said the economy of the country is in disrepair and needs immediate remedial measures failing which it might deteriorate further causing loss and very big setback to the economy, the depreciating rupee, inflation and the energy crisis are straining the economy and the PM needs to sit with hard core economists and take steps to rectify the situation immediately.
The Union pointed out that on top of all this is the energy crisis, the insufficient supply of electricity and gas are alarming and factories are suffering huge losses due to interrupted supplies of energy.
The Union further invited the attention of the PM about the prevailing state of affairs and the fact that the business community is badly shaken by the failure of the law enforcing agencies to control the extortionist and the gangs operating in industrial areas.
The Union has received complaints of robberies at gun point, thefts in factories and kidnapping and killings of businessmen.
These conditions are compelling the business community to close their units to save themselves from functional losses and the government should take remedial steps urgently.