Karachi, May 12, 2025 – The Pakistani rupee posted a notable recovery on Monday morning, appreciating by 31 paisas against the US dollar in the interbank market.
This gain comes in the wake of a landmark ceasefire agreement between Pakistan and India, coupled with the International Monetary Fund’s (IMF) approval of a fresh loan tranche.
By morning trade, the rupee was being exchanged at PKR 281.40 per US dollar, up from last Friday’s closing rate of PKR 281.71. Market participants said the morning brought a wave of optimism as geopolitical tensions showed signs of de-escalation.
Currency dealers and analysts attributed this positive movement of the rupee to the announcement of the ceasefire, which eased investor nerves after weeks of uncertainty. “The morning ceasefire news provided a much-needed psychological relief for both domestic and foreign investors,” said a senior dealer at a Karachi-based commercial bank.
The strengthening rupee was further supported by the IMF’s board approval of a $2.4 billion disbursement under the Extended Fund Facility (EFF), providing confidence in Pakistan’s economic roadmap. Analysts believe that this inflow, along with continued policy support and declining interest rates, is contributing to currency stability.
Khurram Shehzad, advisor to the finance minister, commented that Pakistan is now better positioned to capitalize on improved external and internal dynamics. “Pakistan has much more to offer. The IMF approval, easing rates, and the government’s balanced and credible handling of regional tensions have all helped the rupee rebound this morning,” he stated.
He added that renewed investor interest, falling inflation, and stable regional currency parities make Pakistan an attractive destination in the current economic landscape.
As the morning trade continued, market sentiment remained upbeat, and the rupee held firm. If the ceasefire holds and economic reforms stay on track, the local currency is likely to maintain its upward trajectory in the near term.