Gohar says ‘essential to maintain market-based exchange rate'
'In June, the Real Effective Exchange Rate (REER) stood at 96.61, indicating that the Pakistani rupee is currently undervalued. It is essential to maintain a market-based exchange rate to preserve macroeconomic progress.
'The country is on track for positive economic development and growth, and any attempt to manipulate the exchange rate by any segment must be strongly resisted, as it would risk undoing three years of hard-earned economic stabilisation efforts,' Ejaz stated.
He further said that the State Bank of Pakistan (SBP) must continue to maintain positive real interest rates in accordance with the International Monetary Fund (IMF) agreement and basic economic principles.
'However, the current policy rate is 11%, while full-year inflation for 2025 stands at 4.6%. Maintaining a policy rate that is 6.4 percentage points above inflation lacks sound economic justification,' he added.
Ejaz said Pakistan recorded a current account surplus of $2.1 billion in FY25 — the first in 14 years — a direct result of consistent economic policies and a stable exchange rate. The stock market reflects this renewed confidence.
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