Karachi, June 12, 2025 – The Pakistani rupee continued its downward trajectory against the US dollar on Thursday, closing at PKR 282.67 in the interbank market—marking a depreciation of 20 paisas from the previous day’s closing rate of PKR 282.47.
Currency dealers reported that the persistent pressure on the rupee stemmed from a surge in demand for the dollar, as businesses hasten to settle import and corporate payments ahead of the fiscal quarter ending June 30. The latest federal budget for 2024–25 has also contributed to market uncertainty, leading importers and investors to expedite foreign transactions in anticipation of potential regulatory shifts.
Analysts noted that the government’s ambitious growth outlook for the upcoming fiscal year could accelerate the import of raw materials, which would further elevate dollar demand. Despite steady inflows from overseas workers and moderate export earnings, the rupee remains under pressure due to these growing external liabilities.
Adding to the local currency’s woes is the expanding trade deficit. According to the Pakistan Bureau of Statistics (PBS), the trade deficit widened to $24 billion during the first eleven months (July–May) of FY2024–25, a 10.63% increase from $21.7 billion in the same period last year. This imbalance has intensified pressure on the rupee, as the country’s import-heavy economy remains heavily dependent on dollar outflows.
Economic experts caution that the rupee could face continued volatility in the near term, especially if global oil and commodity prices rise further or if the US dollar strengthens against other major currencies. The State Bank of Pakistan’s monetary policy, coupled with geopolitical developments, will also play a vital role in shaping the rupee’s direction.
Looking ahead, restoring stability will require prudent fiscal execution of post-budget policies, improved dollar inflows through foreign investment and remittances, and tighter economic discipline. Until then, the rupee remains in a fragile position, navigating through both domestic pressures and global economic shifts.