June C/A closes with $328m surplus: advisor
He further said that Real Effective Exchange Rate (REER) index has dropped further to 96.6, rendering PKR more competitive against US$, which should support country's exports and keep external account in check.
Pakistan Equities Market (KSE-100) crossed 140,000 points, making a historic mark in its history, with market value crossing Rs16.8 trillion (close to $60 billion), he added.
Separately, former caretaker minister Gohar Ejaz said 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.
'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 stabilization efforts', Ejaz stated.
He 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 percent, while full-year inflation for 2025 stands at 4.6 percent. Maintaining a policy rate that is 6.4 percentage points above inflation lacks sound economic justification, he added.
Copyright Business Recorder, 2025
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