LAHORE: Rice Exporters Association of Pakistan (REAP) has expressed dismay over the vague policy in doing trade with neighboring Iran. They said that traders are facing loss of billions due to the failure of relevant government functionaries.
Speaking at a press conference on Thursday, Ch. Samee ullah, vice chairman of REAP, said that exports of Basmati rice to Iran have dropped significantly and the Iranian importers now buy rice from India. The basic factor behind this unwelcoming development is the failure of authorities concerned in finalizing currency swap and currency transfer channels.
The Indians are getting a benefit from preferential exchange rate due to availability of official channel against Pakistani exporters, who have to transact at market rates, hence making our price uncompetitive.
He also expressed disappointment over the role of local banks that are no more accepting letters of credit for exporting goods to Iran. He said that Indian exporters do not face such issues with Iran and have favorable trade ties at the state level.