Pakistani exporters are intensifying their criticism of the state-managed exchange rate regime, arguing that the artificial stability of the rupee is undermining the global competitiveness of local goods and acting as a significant deterrent to foreign investment.
Industry representatives contend that the current policy framework prevents the currency from reflecting true market fundamentals, thereby eroding profit margins for manufacturers who rely on international sales.
Shahid Iqbal, former president of the Karachi Chamber of Commerce and Industry (KCCI), emphasized the need for a more flexible monetary approach.
The friction between policymakers and the private sector has escalated, with business leaders asserting that a rigid exchange rate mechanism creates a structural disadvantage in global markets.
According to reports from Dawn Business and the South China Morning Post, the consensus among exporters is that the currency is overvalued relative to its purchasing power parity, making Pakistani products more expensive for foreign buyers compared to regional competitors.
Shahid Iqbal, former president of the Karachi Chamber of Commerce and Industry (KCCI), emphasized the need for a more flexible monetary approach.
He advocated for a gradual depreciation of the currency to align with market realities, stating that such a move would be essential to make Pakistani goods competitive again.