Pakistani exporters are intensifying their criticism of the state-managed exchange rate regime, arguing that artificial currency stability is undermining the competitiveness of local goods and deterring foreign investment.
Industry representatives contend that the current policy framework creates a significant hurdle for the exportable manufacturing sector, which relies on a competitive currency to maintain margins in global markets.
The former president of the Karachi Chamber of Commerce and Industry (KCCI) has called for a shift toward a more market-driven approach, specifically advocating for a gradual depreciation of the rupee.
This adjustment, according to industry voices, is necessary to align the currency with economic fundamentals and make Pakistani exports more attractive to international buyers.
The argument suggests that the current managed rate distorts price signals and reduces the incentive for foreign capital to flow into the country’s productive sectors.
This debate occurs against a backdrop of broader concerns regarding the sustainability of Pakistan’s foreign exchange reserves.