The dollar rate against the rupee should further decrease given the slump in international commodities prices and increase in foreign remittances, Exchange Companies Association of Pakistan General Secretary Zafar Paracha has said.

“I believe the dollar rate will further go down and it should happen,” he said while appearing on Rubaroo which was aired on Aaj News on Thursday.

He substantiated his statement by explaining that the country has two schools of thought: one, textile exporters who allegedly blackmail the government over keeping the foreign currency’s rate low because otherwise, the exports will fall. On the other hand, Paracha said the second group argue that exports have rather decreased amid the high dollar rate and it was quite the same when the dollar was Rs100 against the local currency.

The ECAP secretary general added that the overseas Pakistanis sent over $30 billion dollars in fiscal year 2024 in remittances from $18 billion in a year. The exchange companies have given $6 billion in one year to the government, he said and gave credit to the army chief for such a development.

When asked, he said reforms, as announced by the government, were not being implemented. Paracha called for shutting down extra ministries and controlling expenses. “Now that the government is free of making amendments, it should do something for people’s benefit.”

Paracha called for giving overseas Pakistanis and exchange companies the status of exporters and giving the 30 to 35% rebate to it like given to the exporters. “I guarantee you it will double in two to three years.”

He alleged that the $3 billion announced for local investors was given to a few families.

“Only give trust to the local investor and avoid bureaucracy,” he said and claimed that the Federal Board of Revenue and “30 to 35 institutions” annoy people. “Pakistan’s financial credentials are best but if you spend a loan lavishly, nothing will happen.”

Maritime Affairs Minister Qaiser Ahmed Sheikh, who was also on the show, was of the view that the country’s economy would not be less than five per cent because of the scope of ports and foreign countries’ interest in Pakistan.

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“Central Asian countries are looking at us. I had spoken to the Russian transport minister for transportation on the sidelines of the Shanghai Cooperation Organisation and he wants his goods transported via Karachi port. Malaysia also wants to send palm oil via our ports,” he said and added that two international companies have shown interest in investing here.

In response to a question, economist Abid Qaiyum Sulheri stated that the pace of inflation has gone down, not the inflation. He warned that history would repeat if Pakistan did not meet targets as committed to the International Monetary Fund.

“Internal politics can harm us and we can impose taxes on people, but shutting down cities does not portray a good image,” he said.