Officials from The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) have turned down an offer from the State Bank to arrange export refinance in dollars for exports.

But at the same time they appealed to the bank's governor to provide relief to exporters by cutting refinance rates.

The State Bank made the dollar offer to get exporters a better margin. However, PRGMEA says that the move would involve exporters more in speculation, and has asked that borrowing continue to be in rupees, especially given present uncertain economic conditions.

PRGMEA's chairman, Masood Naqi, said that increases on exports had risen by 26 per cent, leading to overpriced Pakistani textile products which were less competitive in the market. He also cited loss of revenue caused by the decline in duty drawback rates, the increase in export refinance mark-up, revaluation of the Pakistani rupee, and the increase in freight charges as a result of war risk insurance.

Mr Naqi pointed out that exporters remain deprived of large amounts that should have been returned to them in sales tax refund and that exporters should be reimbursed via export refinance on lower rates.