Advocacy of Exchange Rate Management in Pakistan

Duration: 9-month Project effectively starting from 15 Dec 2015

Donor: DFID

Locale: It is a desk study.

Team Members: Dr. Sajid Amin Javed (PI),Mr.  Wajid Ali,Mr. Asad ur Rehman

Concept: Fluctuations in the exchange rate have serious bearing upon all sectors of economy, but go almost unnoticed.  Particularly it is the case in Pakistan.  There is very little public awareness about exchange rate, exchange rate fluctuations and implications thereof. The issue remains less debated and understood in masses, unstated in policy realms and relatively less contested amongst academia and research community of Pakistan. This may be partly because of the complex nature of the issue and partly for not comprehending associated implications fully. The objective of this work is to generate a debate and awareness on the exchange rate and related issues so that a prudent exchange rate policy can be formulated. We assert that a competitive exchange rate is mandatory for the growth of any economy and that overvalued rupee can hurt economic performance of Pakistan.

Objective:

• Advocating Exchange rate literacy.
• Outlining the political economy of exchange rate misalignment in Pakistan
• Examining the implications of misalignment in Rupee for economy of Pakistan
• Drawing actionable policy lessons for formulation of exchange rate policy of Pakistan