‘Managed’ exchange rate hurts exports, investments

KARACHI: An artificial exchange rate not only discourages exporters but also poses a major hurdle to foreign investment, particularly in the exportable manufacturing sector, said exporters, who expressed their dismay over the policy. For the past year and a half, the dollar-rupee parity has been managed, and the local currency has continued to appreciate against the greenback, bit by bit. During the last 18 months, the rupee appreciated by at least Rs4 against the US dollar. Exporters stated that the record imports increased the trade deficit to $39 billion in FY26, offsetting the substantial remittance inflows of $41.5bn. Almost all regional currencies, including those of India and…