Karachi, February 24, 2025 – The Pakistani rupee weakened slightly against the US dollar on Monday, closing lower by 11 paisas due to heightened demand for foreign payments.
By the end of the trading session, the rupee settled at PKR 279.66 per dollar, compared to last Friday’s closing rate of PKR 279.57 in the interbank foreign exchange market.
According to currency analysts, the rupee faced pressure throughout the day as demand for the dollar surged. This increase was primarily attributed to import payments and corporate transactions, which are typically high at the start of the week. Market participants noted that while the rupee depreciated slightly, it remained relatively stable due to ongoing economic support factors.
Despite this minor dip, experts remain optimistic about the rupee’s overall outlook. They believe that the currency is likely to maintain stability in the coming days, supported by an improvement in foreign exchange reserves and a steady inflow of remittances. The rupee has demonstrated resilience in recent weeks, benefiting from increased foreign inflows through export earnings and workers’ remittances.
The State Bank of Pakistan (SBP) recently reported an $85 million increase in the country’s total foreign exchange reserves. As of February 14, 2025, Pakistan’s net forex reserves stood at $15.948 billion, up from $15.863 billion a week earlier. The SBP’s own reserves also rose by $35 million, reaching $11.202 billion compared to $11.167 billion in the previous week. Such an increase in reserves offers critical support to the rupee and helps mitigate exchange rate volatility.
One of the key factors influencing the rupee’s performance is Pakistan’s current account balance. The country recorded a cumulative current account surplus of $682 million for the first seven months of FY2024-25 (July–January). However, January 2025 saw a deficit of $420 million—the first monthly shortfall since July 2024—reflecting a 4% rise compared to the $404 million deficit recorded in January 2024. The SBP attributed this trend to elevated import payments, which have placed additional strain on the rupee-dollar exchange rate.
Nevertheless, there are positive indicators for the rupee’s future. A 32% surge in remittances during the first seven months of the fiscal year has significantly bolstered foreign exchange reserves. Additionally, exports rose by 10%, reaching $19.55 billion, which has helped narrow the trade deficit. These factors provide crucial support to the rupee and reinforce expectations for greater stability in the currency market.