Karachi, December 31, 2025 — The Pakistani rupee depreciated by Rs1.75 against the US dollar during the year 2025, according to data released by the State Bank of Pakistan (SBP). The interbank foreign exchange market closed on December 31, 2025, at Rs280.12 per dollar, compared to Rs278.55 per dollar at the same time last year.
Despite the annual depreciation, the rupee has shown relative stability in recent months, gradually strengthening against the dollar due to steady foreign exchange inflows and improved investor confidence. On the final trading day of the year, December 31, 2025, the interbank rate recorded a modest gain of 3 paisas, closing at Rs280.12 per dollar, slightly above the previous day’s closing of Rs280.15.
Currency market analysts highlighted that Pakistan’s robust foreign exchange reserves, coupled with consistent remittance inflows, have played a crucial role in supporting the rupee’s stability. These factors are expected to help maintain a stable exchange rate in early 2026, providing confidence to businesses and importers.
However, experts also cautioned that with the anticipated rise in economic activities and industrial expansion, dollar demand could increase for the import of industrial raw materials. This could potentially put upward pressure on the rupee if inflows do not match demand.
Overall, the SBP and market observers indicate that while the rupee ended 2025 slightly weaker against the dollar, its performance remained stable compared to regional currencies, and strategic monitoring of foreign exchange trends will be crucial to maintaining stability in the upcoming year.