Karachi, January 9, 2026 – The Pakistani rupee strengthened by 3 paisa against the US dollar on Friday, buoyed by robust remittance inflows, according to the State Bank of Pakistan (SBP).
The interbank exchange rate for the US dollar declined to Rs280.02 from the previous day’s Rs280.05, reflecting gradual improvement in the local currency.
Currency market analysts attributed the rupee’s appreciation to consistent inflows from overseas Pakistanis. Pakistan has reached a historic milestone in workers’ remittances, receiving a record $19.76 billion during the first half of the current fiscal year (July–December 2025). This represents an 11% increase compared to $17.80 billion in the same period of the previous fiscal year. In December 2025 alone, remittances totaled $3.6 billion, showing 16.5% year-on-year and 12.6% month-on-month growth.
Analysts noted that importers are exercising caution in placing new foreign orders due to the gradual decline of the dollar in the local market. The rupee also gained support from improving foreign exchange reserves. Pakistan’s total forex reserves rose by $180 million last week, with net reserves reaching $21.192 billion for the week ending January 2, 2026, compared to $21.012 billion a week earlier. The increase reflects steady inflows and growing market confidence, supported by recent international financing.
The ongoing strength of remittances and stable forex reserves are expected to continue supporting the Pakistani rupee against the US dollar in the near term.