Former caretaker minister warns against rupee devaluation, calls for stability
Business
Former caretaker commerce minister Gohar Ejaz has opposed further devaluation of the Pakistani rupee, saying it will hit the common people with rising prices.
ISLAMABAD (Dunya News) - Former caretaker federal commerce minister and chairman of Economic Policy & Business Development, Gohar Ejaz, has strongly opposed any further devaluation of the Pakistani rupee.
In a statement, Ejaz said some groups are backing devaluation for personal gains. “Pakistan needs stability, not a weaker rupee,” he said, warning that devaluation would unleash a storm of inflation and hit the common people the hardest.
He noted that the real exchange rate is stable at 278 to 282 rupees per US dollar and that further devaluation is unnecessary. Ejaz added that lowering the rupee’s value will increase import costs but will not improve national competitiveness.
Ejaz also pointed out that export growth does not depend solely on currency value. Between 2024 and 2025, despite a rise in the real exchange rate, exports reached 40 billion dollars.
He criticized the 2023 devaluation, which coincided with a drop in exports, showing that a weaker currency does not automatically boost trade.
Highlighting challenges for the manufacturing sector, Ejaz said electricity costs in Pakistan are almost double those in neighboring countries, and interest rates are higher.
He urged policymakers to create stability in the currency market, cut production costs, and strengthen institutions to make Pakistan competitive globally.
