Karachi, June 10, 2025 – The Pakistani rupee eased marginally against the US dollar on Tuesday, coinciding with the presentation of the federal budget for fiscal year 2025–26.
The slight dip in the rupee’s value reflects market anxiety over upcoming fiscal measures and broader economic conditions.
At the close of trading in the interbank foreign exchange market, the rupee stood at PKR 282.21 to the dollar, a minor decline of four paisas from its last closing rate of PKR 282.17 on June 5. Currency markets had remained closed from June 6 to June 9 due to Eid-ul-Adha holidays, resuming activity just as the government unveiled its budget.
Currency analysts noted that the rupee came under pressure primarily due to increased demand for dollars by importers who rushed to place foreign orders ahead of the budget. Uncertainty over potential new tariffs and regulatory changes drove importers to secure transactions before the budget’s implementation. However, the Pakistani rupee avoided significant losses, thanks to steady inflows from remittances and export receipts.
The Eid season traditionally brings a surge in remittances from overseas Pakistanis, and this year was no different. These inflows, along with exporters converting their earnings into rupees, provided crucial support to the currency. “The rupee remains vulnerable due to ongoing outflows and the widening trade deficit, but Eid-related remittances have temporarily cushioned the impact,” a senior currency analyst observed.
Despite the current support, economists are warning of persistent risks ahead. According to data from the Pakistan Bureau of Statistics (PBS), the trade deficit ballooned to $24 billion during the first 11 months (July–May) of FY2024–25, up 10.63% from $21.7 billion during the same period last year. The heavy reliance on imports continues to weigh down the Pakistani rupee, particularly as global oil prices and dollar strength remain volatile.
Looking forward, the fate of the rupee will depend on several interlinked factors: the government’s post-budget fiscal strategy, international commodity prices, geopolitical developments, and monetary policy decisions. While the budget has momentarily redirected market focus, maintaining the stability of the Pakistani rupee will demand robust and consistent economic management.