Interview with Mr Hamid Hussain Qureshi – Chief Executive, Macca Food International
Mr Hamid Hussain Qureshi is the Chief Executive of Macca Food International, which deals in world class top quality rice varieties of Pakistan, fresh frozen sea foods, allied food commodities and branded products, milling, processing as exporting group of companies having business operations in Asia, America, Europe, Myanmar, Singapore, Sweden and Canada with clients all across the world.
PAGE: What kind of impact could rupee devaluation have on rice exporters?
Hamid Hussain Qureshi: Pakistani Rice Exporters will be having short term gains of profits making on rice export because of current Pakistani rupee devaluation. Those rice exporters who have sufficient rice stocks in hands and bought at cheaper prices as well as those rice exporters who have recently exported to their respective markets worldwide would get benefit. Impact of rupee devaluation involves stock hedging and stock holders activities will be leading bullish market trends, which can start panic buying among millers/stock holders/ exporters. Such increase of rice demand in local markets goes for price hike, which is not good for genuine regular exporters but overall situation of Pakistani rice exporters may bring better value share in international market arena.
PAGE: What are your suggestions for current state of Pakistani rupee?
Hamid Hussain Qureshi: In my opinion, rupee devaluation within limits may be okay for the season keeping in mind that devaluation must not be continued process to sell cheap and increase exports. Short term rupee devaluation is better option to increase export and to capture better markets worldwide. It is essential to have a controlled timely devaluation strategy. Our economic manager must monitor all market trends worldwide.
PAGE: Do You think devaluation of Pakistani rupee would attract foreign investors ?
Hamid Hussain Qureshi: Yes, it does all over the world. Pakistan may get some benefit from it as well. We need to attract at least $5 billion of FDI every year in particularly manufacturing sector. There is FDI of around one trillion dollars in the world every year however the share of Pakistan is not seen anywhere.
PAGE: Your views about historic performance of Pakistani rupee?
Hamid Hussain Qureshi: Dollar was for less than four rupees till late 60s. However, the devaluation took place in 70s and 80s. Even in 2008, dollar was selling for 60 rupees. There has been sharp devaluation over the period of last 9 years. We must look at the balance of trade, current account deficit, foreign debt and GDP growth while taking any decision.
PAGE: What are you suggestions to the economic managers for currency devaluation?
Hamid Hussain Qureshi: In our opinion, short term Pakistan rupee devaluation can be good for economy because sufficient profit making in export and to discourage imports and to safe guard foreign exchange. Devaluation and rebate incentives on exports will lead to further expansion of exports and more foreign exchange earnings will create massive increase and trade deficit gap will minimize and balance of trade would be in favor of Pakistani business and economy.