Karachi, May 15, 2025 – The Pakistani rupee (PKR) posted a modest gain against the US dollar on Thursday, strengthening by 11 paisas amid improved market sentiment fueled by foreign inflows.
The rupee closed at PKR 281.61 per dollar in the interbank market, compared to the previous day’s closing of PKR 281.72.
Currency market analysts attribute this appreciation in the rupee to the recent disbursement of $1.023 billion by the International Monetary Fund (IMF) under its Extended Fund Facility (EFF). The inflow has provided a much-needed cushion to Pakistan’s foreign exchange reserves and supported the local currency against the dollar.
In addition to IMF funds, the rupee also benefited from steady inflows through export earnings and overseas workers’ remittances. These inflows have helped offset some of the demand for dollars in the local market, temporarily easing pressure on the PKR.
Despite this positive momentum, analysts caution that the rupee may face renewed pressure in the near term. The recent ceasefire agreement between Pakistan and India has led to a spike in cross-border trade activity, increasing demand for imported goods and raw materials. As a result, the need for dollar-denominated payments is on the rise, which could strain the rupee if not balanced by sustained inflows.
Experts emphasize that while the PKR has shown resilience, long-term stability requires careful management of dollar outflows. A rising import bill could offset gains made through foreign funding, leading to volatility in the currency market. To safeguard the rupee, Pakistan must continue focusing on enhancing its dollar-generating sectors such as exports, remittances, and foreign direct investment.
In conclusion, the PKR’s gain against the dollar on May 15 is a welcome development, signaling market confidence following the IMF disbursement. However, the rupee’s performance going forward will depend heavily on the country’s ability to manage external accounts, control dollar outflows, and sustain foreign currency reserves. As Pakistan navigates through complex economic challenges, the balance between rupee stability and dollar demand remains crucial for financial and economic resilience.