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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Express Tribune
8 minutes ago
- Express Tribune
India seeks to recalibrate China ties
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Trump and COAS Munir discussed continuation of a counterterrorism collaboration, under which the US has previously provided weapons to Pakistan, a non-Nato US ally, and talked about ways to further strengthen ties, a readout of the meeting from the Inter-Services Public Relations said. That raised concern in New Delhi that any arms Pakistan receives from the US could be turned on India if the neighbours end up in conflict again, two of the officials said. Harder stance Despite what used to be public displays of bonhomie between Trump and Modi, India has been taking a slightly harder stance against the US in recent weeks, while trade discussions have also slowed, the Indian officials and an Indian industry lobbyist said. Modi declined an invitation from Trump to visit Washington after the G7 meeting in Canada in June. 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Express Tribune
an hour ago
- Express Tribune
Chinese firms to retain 50% proceeds
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Express Tribune
an hour ago
- Express Tribune
$10b UAE trade attracts private sector
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