Pakistan’s exporters have criticized the country’s managed exchange rate policy, arguing that an artificially strong rupee is undermining exports, discouraging foreign investment, and widening the trade deficit. According to a Dawn report, industry representatives said the rupee has appreciated by around Rs. The criticism comes after Pakistan’s trade deficit widened to $39 billion in FY26, despite workers’ remittances reaching a record $41.5 billion. ALSO READ Saudis Roll Over $5 Billion to Pakistan for 3 YearsThey warned that an artificially strong currency could deter foreign investment, particularly in export-oriented manufacturing. Exporter Amir Aziz said the exchange rate policy, coupled with the State Bank of Pakistan’s decision to keep the policy rate at 11.5 percent, has increased production costs and squeezed manufacturers.