Chairman Economic Policy and Business Development (EPBD) think tank Gohar Ejaz has strongly opposed repeated calls for rupee devaluation, stressing that the real solution to Pakistan’s economic challenges lies in building export competitiveness rather than relying on currency depreciation.
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In a bold move aimed at revitalizing Pakistan’s industrial sector and enhancing its global competitiveness, Ejaz proposed a two-phase economic strategy focused on reducing energy costs and interest rates.
He emphasized the urgent need to align Pakistan’s economic fundamentals with regional benchmarks. “We must act decisively to make our industries regionally competitive,” he stated. “This begins with affordable energy and accessible capital.”
The first phase of the plan calls for energy tariff reduction to 9 cents per unit and policy interest rate cut to 9 percent, as these measures are designed to provide immediate relief to manufacturers and exporters burdened by high input costs and expensive borrowing. In the second phase he proposed for bringing energy tariff to 6 percent and interest rate to 6 percent as well.
In a post on X (formerly Twitter), Ejaz pointed out that in 1975 the rupee stood at Rs 9.99 per US dollar, but by 2025 it had collapsed to Rs 284 — a sharp decline that has failed to improve dollar availability or strengthen the economy.
He recalled that during Pakistan’s “golden industrial era” from 1955 to 1971, the rupee remained stable at Rs 4.75, despite industrial growth and expansion. “Our economic wizards start clamoring for devaluation on the back of genuine scarcity in the open market at the official exchange rate, as tax evaders and dollar hoarders buy at a ~3% higher rate. But in 50 years, devaluation from Rs 9.99 to Rs 284 has not improved dollar availability,” he remarked.
Ejaz questioned when policymakers would finally address the root causes of the economic crisis and devise a comprehensive plan to make Pakistan competitive and viable for sustainable, export-led growth.
“Devaluation will neither improve dollar availability nor make us economically viable; as evidenced over the last 50 years — and it will not happen over the next 50 years. Our economic wizards forget that almost all inputs are dollar-based,” he warned.
Ejaz’s remarks come amid ongoing debate over exchange rate policies, with experts divided on whether further depreciation can support exports or whether structural reforms are the only way forward.