Karachi, August 19, 2025 – The Pakistani rupee continued its upward trajectory on Tuesday, appreciating to PKR 281.96 against the dollar in the interbank foreign exchange market.
The local currency gained 8 paisas from the previous closing of PKR 282.02, reflecting renewed confidence in Pakistan’s financial outlook.
Market analysts credit this strength of the rupee to several supportive factors. A steady inflow of export receipts and overseas remittances has helped balance demand pressures created by import payments. At the same time, strict action by the State Bank of Pakistan (SBP) and law enforcement agencies against illegal currency operators has further stabilized sentiment.
The country’s stable foreign reserves, which stood at $19.497 billion last week, have also underpinned the rupee’s resilience. Moreover, the SBP’s policy shift to remove the lien requirement on exporters under the “Delayed Realization of Export Proceeds” framework has eased liquidity challenges. This step, coupled with tighter monitoring of illicit dollar flows, has been welcomed by businesses and traders alike.
Investor confidence has also been lifted by foreign inflows surpassing $3 billion during July 2025, including a notable rise in workers’ remittances. Experts, however, caution that while the rupee has shown impressive gains, sustainability will depend on maintaining strong remittance levels and curbing speculative dollar demand. With imports rising by 29.25% and exports climbing by 17% in July, balancing external accounts will remain a key challenge for policymakers.