Karachi, March 15, 2024 – The US Dollar experienced a decline against the Pakistani Rupee on Friday, settling at PKR 278.74 at the interbank foreign exchange market.
This marked a slight depreciation of the dollar by PKR 0.03 compared to the previous day’s closing rate of PKR 278.77.
Currency analysts attributed the weakening of the dollar to several factors, including increased foreign inflows and improvements in foreign exchange reserves. The latest data released by the State Bank of Pakistan (SBP) revealed a significant rise of $131 million in the country’s weekly foreign exchange reserves for the week ending March 8, 2024. During this period, the country’s foreign exchange reserves surged to $13.151 billion, compared to the previous week’s $13.02 billion, signaling positive momentum in the economy.
Furthermore, the SBP reported a noteworthy 13 percent Year-on-Year (YoY) growth in workers’ remittances during February 2024. Remittance data showed a substantial increase to $2.25 billion in February, up from $1.99 billion recorded in the same period the previous year. This surge in remittances reflects positively on the country’s economic stability and resilience.
Additionally, Pakistan’s exports experienced a commendable 9 percent increase during the period of July to February 2023-24. Export figures rose to $20.35 billion in the first eight months of the current fiscal year, indicating growth from the $18.67 billion recorded in the corresponding period of the previous fiscal year. This uptick in export revenue not only strengthens the value of the rupee but also augurs well for the overall economic outlook of the nation.
The appreciation of the Pakistani Rupee against the US Dollar signifies a favorable trend for the country’s economy, fueled by increased foreign reserves, growing remittances, and expanding export volumes. These developments contribute to bolstering investor confidence and improving macroeconomic stability.
Looking ahead, analysts anticipate continued support for the Pakistani Rupee as the country’s economic fundamentals remain robust. Factors such as prudent fiscal policies, diversification of exports, and strategic initiatives to attract foreign investment are expected to sustain the positive trajectory of the rupee in the foreign exchange market.
The recent decline of the US Dollar against the Pakistani Rupee underscores the resilience and potential of Pakistan’s economy. With consistent efforts to strengthen key economic indicators, Pakistan is poised for sustainable growth and prosperity in the global financial landscape.
