Chairman Economic Policy & Business Development (EPBD) Think Tank, Gohar Ejaz, has strongly opposed any further devaluation of the Pakistani Rupee, warning that such a move would trigger a new wave of inflation and damage the country\u2019s economic stability.
\nEjaz said that certain elements are supporting devaluation for personal gain, but Pakistan does not need a weaker currency\u2014it needs stability.
\nHe said that Pakistan\u2019s Real Effective Exchange Rate (REER) has been recorded at 104, indicating that the rupee is already aligned with fundamentals.
\nAccording to him, the currency has stabilized at Rs 278\u2013282 per dollar, leaving no justification for further depreciation.
\n\u201cDevaluation will unleash a storm of inflation and push imports to emergency levels,\u201d he warned.
\nEjaz argued that weakening the rupee would not improve Pakistan\u2019s competitiveness, adding that 92% of the economy is hurt by currency devaluation rather than helped. With 50% of the population already living below the poverty line, he urged policymakers not to burden the poor any further.
\nEjaz noted that data from 2022 to 2025 shows no correlation between exports and the exchange rate.
\nHe said the REER rose to 98.5 in 2024 and 100.9 in 2025, yet exports increased, proving that devaluation does not drive export growth.
\nHe accused policymakers of destroying the currency in 2023 under the pretext of REER, arguing that devaluation actually reduced exports, dispelling the common misconception. Ejaz emphasized that Pakistan\u2019s export sector is suffering due to high production costs, not the exchange rate: Electricity for manufacturers: 12\u201314 cents\/unit, neighboring countries: 6\u20138 cents\/unit. Interest rate in Pakistan: 11% Neighboring countries: 5.5%
\nHe stressed that Pakistan\u2019s manufacturing relies heavily on imported raw materials, making devaluation even more damaging.
\n\u201cCurrency markets react to confidence. We must create stability, lower production costs, and build strong institutions to compete globally,\u201d he said.
\nEjaz said that Pakistan must pursue structural reforms, not currency shocks, to strengthen the economy.<\/p>\n","protected":false},"excerpt":{"rendered":"
Chairman Economic Policy & Business Development (EPBD) Think Tank, Gohar Ejaz, has strongly opposed any further devaluation of the Pakistani Rupee, warning that such a move would trigger a new … Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":3072,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[6],"tags":[410],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t