Karachi, July 18, 2025 – The Pakistani rupee showed a modest recovery against the US dollar on Friday, gaining ground in the interbank foreign exchange market.
The rupee appreciated by 9 paisas, closing at PKR 284.87 compared to the previous day’s closing rate of PKR 284.96.
Currency experts have attributed this gain in the Pakistani rupee primarily to healthy inflows of export receipts and workers’ remittances. These inflows provided much-needed liquidity and eased pressure on the foreign exchange market. The improved sentiment was further bolstered by an uptick in the State Bank of Pakistan’s (SBP) official foreign exchange reserves, despite a marginal overall dip in the country’s total reserves.
According to the latest SBP report, Pakistan’s total forex reserves stood at $19.957 billion as of July 11, showing a weekly decline of $72 million from $20.029 billion recorded on July 4. However, the SBP’s own reserves increased by $24 million, reaching $14.526 billion from $14.502 billion a week earlier, providing a positive signal for the stability of the rupee.
The role of overseas Pakistanis has also been pivotal in supporting the Pakistani rupee. During the fiscal year 2024–25, remittance inflows surged to an impressive $38.3 billion, marking a 26.6% increase compared to the previous year. These strong remittance figures have helped stabilize the interbank market and strengthen the rupee’s position amid ongoing external debt servicing.
Adding to the positive outlook, the Pakistan Bureau of Statistics (PBS) reported a 9.47% reduction in the trade deficit during June 2025. The improved trade balance, reflecting a healthier alignment between imports and exports, is viewed as another encouraging sign for the Pakistani rupee, potentially easing medium-term exchange rate pressures.
Despite the current upward momentum, financial analysts caution that the rupee remains vulnerable to fluctuations if demand for the US dollar intensifies. They emphasize the importance of sustained inflows, careful debt management, and controlled import levels to preserve this stability.
In summary, while challenges remain, the outlook for the Pakistani rupee appears cautiously optimistic, supported by resilient fundamentals and proactive management of foreign exchange resources.