Karachi, March 24, 2025 – The Pakistani rupee weakened against the US dollar on Monday, closing at PKR 280.37 in the interbank foreign exchange market. The decline in the rupee’s value was primarily driven by increased dollar outflows related to import and corporate payments.
The rupee lost 11 paisas compared to last Friday’s closing rate of PKR 280.26. Currency market experts attributed this depreciation to rising demand for dollars, as businesses and importers scrambled to secure foreign currency to meet their payment obligations. The persistent outflows of dollars from the market exerted downward pressure on the rupee, limiting its ability to stabilize against the greenback.
Market analysts highlighted that while the rupee faced depreciation due to dollar outflows, a notable increase in remittances from overseas Pakistanis ahead of Eid provided some cushion. The inflows of foreign currency from expatriates helped mitigate further losses in the rupee’s value. However, experts caution that this relief may be temporary, and volatility could return once remittance inflows taper off after the festive period.
Despite a recent uptick in Pakistan’s foreign exchange reserves, the rupee remained under pressure. According to the latest data released by the State Bank of Pakistan (SBP), total liquid foreign exchange reserves increased by $187 million over the past week. As of March 14, 2025, reserves stood at $16.016 billion, up from $15.929 billion recorded a week earlier. This increase was attributed to financial inflows aimed at strengthening external stability.
Additionally, SBP data indicated that the central bank’s own foreign exchange reserves rose by $49 million, reaching $11.147 billion. However, despite these gains, concerns persist regarding Pakistan’s external financial obligations and the rupee’s future stability in the face of consistent dollar outflows.
Looking ahead, financial experts predict that the rupee may experience further fluctuations after Eid as import bills and external debt repayments come due. The rising current account deficit and continued reliance on foreign currency for trade and debt obligations may add additional strain. Unless policymakers introduce measures to curb unnecessary imports or attract more foreign inflows, the rupee could face renewed downward pressure.
To ensure stability, financial authorities and market participants must closely monitor forex trends and manage dollar outflows effectively. With ongoing economic challenges, proactive policy decisions will be crucial in maintaining the rupee’s stability in the coming weeks.