Karachi, July 24, 2025 – The Pakistani rupee recorded a sharp gain of 54 paisas against the US dollar on Thursday, closing at PKR 284.22 in the interbank foreign exchange market.
This marks the second consecutive session of appreciation, with the local currency having gained a total of 75 paisas over the past two trading days.
Currency analysts attributed the rupee’s strengthening to a combination of factors, including strong interbank demand management, timely inflows from exports, and a notable rise in overseas workers’ remittances. These dynamics have enhanced foreign currency liquidity in the system, easing pressure on the Pakistani rupee and helping it gain ground.
The latest report by the State Bank of Pakistan (SBP) also bolstered market sentiment. Although Pakistan’s overall foreign exchange reserves dipped slightly to $19.957 billion as of July 11, 2025 (down from $20.029 billion a week earlier), the SBP’s own reserves showed a welcome increase of $24 million, rising to $14.526 billion. This modest improvement in central bank reserves injected confidence among market participants and supported the rupee’s trajectory.
One of the biggest contributors to this rally has been the exceptional performance of remittances. During FY 2024–25, remittance inflows soared to a record $38.3 billion, reflecting a 26.6% year-on-year surge. This steady influx of foreign exchange has significantly eased pressure on the external account, enabling better management of interbank flows and improving the strength of the Pakistani rupee.
Moreover, the narrowing of Pakistan’s trade deficit added to the rupee’s resilience. According to the Pakistan Bureau of Statistics, the trade gap shrank by 9.47% in June 2025, driven by increased exports and cautious import controls.
Looking ahead, experts say the rupee’s future will depend on stable macroeconomic policies, continued remittance inflows, and sustained investor confidence. For now, the Pakistani rupee appears to be holding firm amid an otherwise challenging global environment.