Karachi, April 14, 2025 – The Pakistani rupee continued its struggle in the interbank market on Monday, weakening by 13 paisas against the US dollar, closing at PKR 280.60 compared to last Friday’s rate of PKR 280.47. This decline came unexpectedly, even as the country reported record-high remittance inflows during March.
According to data released by the State Bank of Pakistan (SBP) earlier in the day, Pakistan received a historic $4.1 billion in workers’ remittances last month — the highest ever recorded in a single month. Despite these unprecedented inflows, the rupee failed to gain traction, surprising both investors and market analysts.
Currency experts attributed the rupee’s decline to strong demand for the US dollar, particularly from importers and corporate entities, who typically ramp up purchases at the start of the week. “Even though the inflows were remarkable, the immediate pressure from payment obligations offset any positive impact on the rupee,” said a senior analyst at a Karachi-based brokerage firm.
The global financial landscape also played a role in the rupee’s slide. Ongoing trade uncertainties and geopolitical tensions have fueled a worldwide demand for the US dollar, pushing it higher against most currencies — including the rupee. Analysts noted that such external factors often overshadow domestic economic indicators, including foreign exchange inflows.
Despite the rupee’s slight dip, financial experts remain cautiously optimistic. They believe that future inflows, particularly those expected from the International Monetary Fund (IMF), along with continued strength in exports and remittances, could stabilize the rupee in the near term. “The fundamentals are gradually improving, and consistent inflows are key to supporting the rupee’s value,” another analyst commented.
The SBP is likely to keep a close watch on exchange rate movements, especially as Pakistan prepares for further negotiations with global lenders. In the meantime, the rupee remains sensitive to both local demand and global currency trends — highlighting the complex balance between inflows and outflows in determining exchange rate stability.