Karachi, June 3, 2025 — The Pakistani rupee continued its downward trajectory on Tuesday, depreciating by 15 paisas against the US dollar, primarily due to a spike in foreign payments ahead of the federal budget 2025-26.
The rupee closed at PKR 282.12 per dollar in the interbank market, compared to the previous day’s closing of PKR 281.97. Currency dealers noted that increased demand for the dollar, particularly for import and corporate payments, weighed on the local currency.
Analysts said the upcoming budget, scheduled for June 10, has led importers to place advance orders, fearing possible increases in duties and taxes. This pre-budget buying spree has intensified foreign payments, putting further pressure on the rupee.
Despite the dip, the market witnessed a healthy inflow of foreign exchange through remittances and export proceeds. With Eid-ul-Adha just days away, overseas Pakistanis have been remitting higher amounts to their families, boosting dollar inflows. Additionally, exporters are actively converting their foreign earnings into rupees to meet their month-end financial obligations, which has helped cushion the blow to some extent.
“Though the rupee has come under pressure due to increased foreign payments, strong inflows from exports and remittances are balancing market forces,” said a senior currency analyst. He added that the Eid-related remittance surge is likely to continue for the next few days.
Analysts also highlighted that the country’s foreign exchange reserves are gradually improving due to inflows from multilateral sources and export earnings. If this trend continues, the rupee may regain stability by the end of the fiscal year.
However, concerns remain regarding the sustainability of the current account position, especially if dollar outflows persist. Market participants are closely watching developments related to the budget and external financing as key indicators for the rupee-dollar parity in the coming weeks.
Looking ahead, the rupee’s trajectory will depend on fiscal measures in the upcoming budget, global oil prices, and geopolitical developments.