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. This was stated by former caretaker minister Gohar Ejaz.
“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 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 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.
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Ejaz said that Pakistan has recorded a current account surplus of $2.1 billion — the first in 14 years — a direct result of consistent economic policies and a stable exchange rate. The stock market reflects this renewed confidence. The KSE-100 Index has reached 140,000, with a price-to-earnings (PE) ratio of 7, resulting in a market capitalization of $58 billion as of July 2025. For comparison, market capitalization was $100 billion at a PE of 12 in August 2017.
To sustain this progress, Pakistan’s economy must continue to expand — to reach new heights and bring growth and prosperity to its 250 million citizens, Ejaz added.
Khurram Shahzad Advisor to the Finance Minister said that country’s Current Account (CA) for June 2025 closes in $328 million surplus, taking full-year surplus to over $2.1 billion –annual Surplus recorded after 14 years, and the largest Surplus in 22 years.
He further said that Real Effective Exchange Rate (REER) index has dropped further to 96.6, rendering PKR more competitive against US$, 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 Rs 16.8 trillion (close to $60 billion), he added.