Karachi, March 19, 2025 – The Pakistani rupee made a slight gain against the US dollar on Wednesday, benefiting from inflows related to the Eid festival. The increase in remittances from overseas workers contributed to a marginal strengthening of the local currency in the interbank foreign exchange market.
The rupee appreciated by six paisas, closing at PKR 280.21 per dollar, compared to the previous day’s rate of PKR 280.27. Currency experts attributed this slight improvement to the seasonal surge in remittances, as expatriates send funds to support their families in Eid celebrations. The inflows provided temporary relief for the rupee, helping it hold ground against the dollar despite underlying economic concerns.
However, analysts warned that the rupee could face renewed pressure after Eid due to increased import payments and external debt obligations. The country’s current account deficit for February further strained the currency, as rising external liabilities heightened demand for the dollar in the interbank market. The reliance on external funding remains a critical factor in determining the future trajectory of the rupee.
Economic challenges continue to weigh on the rupee, with experts cautioning that further depreciation is possible if foreign exchange reserves keep declining. The depletion of reserves makes it increasingly difficult for Pakistan to manage external debt repayments, intensifying the need for additional inflows to stabilize the rupee.
According to data from the State Bank of Pakistan (SBP), the country’s official foreign exchange reserves declined by $152 million over the past week. As of March 7, 2025, reserves stood at $11.098 billion, down from $11.250 billion on February 28, 2025. This downward trend raises concerns about Pakistan’s ability to manage its external liabilities and sustain the rupee against the dollar in the long run.
If Pakistan secures fresh foreign inflows or successfully limits imports, the rupee may regain some stability in the coming weeks. Otherwise, persistent demand for the dollar could drive further depreciation. Policymakers and financial institutions must closely monitor these developments to prevent excessive pressure on the rupee in the near future.