Karachi, July 31, 2025 – The Pakistani rupee extended its winning streak for the seventh consecutive session on Thursday, continuing to show strength against the US dollar in the interbank foreign exchange market.
The local currency appreciated by eight paisas, settling at PKR 282.87 per dollar, up from the previous day’s closing of PKR 282.95.
Since July 22, when the rupee was trading at PKR 284.97, the Pakistani rupee has gained a total of PKR 2.10, reflecting improved market confidence and stronger reliance on formal currency exchange mechanisms. Analysts credit the positive trend to intensified regulatory enforcement, particularly the crackdown on illegal currency trading, which has redirected dollar flows toward official banking channels.
Economic fundamentals have also played a crucial role in supporting the rupee’s momentum. Pakistan’s credit outlook was recently upgraded by Fitch Ratings, which significantly boosted investor confidence. Additionally, consistent inflows from exports and remittances have helped reduce dollar demand in the interbank market.
Despite a slight drop in foreign exchange reserves, the rupee remained steady. As per the State Bank of Pakistan (SBP), total reserves fell by $39 million to $19.918 billion for the week ending July 18. SBP’s own reserves declined by $69 million to $14.457 billion due to scheduled debt repayments.
Remittances have provided vital support to the Pakistani rupee. In FY 2024–25, Pakistan received $38.3 billion in remittances—a 26.6% increase year-on-year. Furthermore, a 9.47% reduction in the trade deficit for June, reported by the Pakistan Bureau of Statistics, indicates stronger export performance and disciplined import policies. Overall, the rupee’s continued appreciation points to improving macroeconomic stability.