Pakistan Footwear Manufacturers Association (PFMA) has applauded the Federal government’s initiative to impose an immediate ban on the import of luxury goods as one of the major preventive steps to forestall the looming default and control the spiraling hike in dollar price against rupee.

In a statement issued on Friday, Chairman Pakistan Footwear Association Mr Zahid Hussain said that the long-awaited but much-needed step taken by Prime Minister Mian Muhammad Shahbaz Sharif would help save the precious foreign exchange besides arresting hike in dollar price. The ban on the import of footwear would gear up local manufacturing, and it will also generate more employment in the country.

However, Zahid Hussain, the Chairman, called upon the Prime Minister that the shipments which are en route and their LCs (Letter of Credit) had been opened according to the bank record before May 19, they may be given a one-time exemption from this ban so that they are cleared on the ports without any delay.

He said that the prime minister’s wise decision is to support the balance of payments position and will not apply to the imports in rupees or through a barter mechanism by land routes. The Chairman further said that the decision to ban the import of luxury items would save the country’s precious foreign exchange. At the same time, austere and financially stronger people must lead in this effort so that the less privileged do not have to bear this burden. “We will overcome all the challenges with resolve and determination,” he added.

The decision comes as the dollar has witnessed a meteoric rise against the rupee over the past few weeks because of the country’s rising import bill, growing current account deficit and depleting foreign exchange reserves. The dollar shattered all records on Thursday and soared to Rs200 in the interbank market.