Karachi, August 20, 2025 – The Pakistani rupee registered a modest improvement against the US dollar in Wednesday’s interbank foreign exchange market, closing at PKR 281.95 compared to the previous day’s level of PKR 284.96.
Currency market experts noted that the rupee’s resilience is backed by a combination of improving macroeconomic indicators and targeted policy actions. Improved Foreign Direct Investment inflows and a narrowing current account deficit have provided critical support, helping the local currency resist pressure from import payments.
Analysts pointed out that consistent export earnings, along with overseas workers’ remittances, have reduced reliance on speculative trading in the dollar. The State Bank of Pakistan (SBP) has also intensified its monitoring of illegal operators in the open market, further curbing undue demand and stabilizing the rupee.
Another major factor underpinning stability is Pakistan’s foreign exchange reserves, which stood at $19.497 billion last week. This buffer, combined with the SBP’s decision to ease restrictions on exporters by removing the lien requirement under the “Delayed Realization of Export Proceeds” framework, has bolstered liquidity and enhanced business confidence.
During July 2025 alone, foreign inflows exceeded $3 billion, driven largely by stronger remittances. Market watchers, however, caution that while the rupee’s gains against the dollar are encouraging, long-term sustainability depends on maintaining healthy inflows and curbing speculative activity. Rising imports, up 29.25 percent, versus a 17 percent increase in exports highlight the need for careful policy management.