Karachi, March 13, 2025 – The Pakistani rupee weakened further against the dollar on Thursday, closing at PKR 280.05 in the interbank market due to increased foreign payments from importers and corporate entities.
The rupee lost 8 paisas compared to the previous day’s closing rate of PKR 279.97 against the dollar.
Currency analysts expressed cautious optimism regarding the rupee’s stability, citing positive inflows from remittances and export receipts. According to the State Bank of Pakistan (SBP), workers’ remittances surged by 32.5% during the first eight months (July–February) of FY25, reaching $24 billion—up from $18.1 billion recorded during the same period in the previous fiscal year. February 2025 alone saw an inflow of $3.1 billion, marking a notable 38.6% year-on-year (YoY) increase compared to February 2024. On a month-on-month (MoM) basis, remittances rose by 3.8% from January 2025, providing some support to the rupee despite ongoing market volatility.
Despite these inflows, experts warned that the rupee remains vulnerable to fluctuations due to persistent external account pressures and dwindling foreign exchange reserves. The start of the trading week saw heightened dollar demand from importers and corporate entities, a recurring trend that often puts downward pressure on the rupee. The widening trade deficit and rising global commodity prices further add to the currency’s challenges.
Official data showed that Pakistan’s total foreign exchange reserves declined by $52 million over the past week, underscoring ongoing external financing concerns. As of February 28, 2025, total reserves stood at $15.874 billion, down from $15.926 billion a week earlier. While SBP-held reserves increased by $27 million to reach $11.25 billion, commercial banks’ reserves declined by $79 million to $4.624 billion. This depletion in reserves raises concerns about the rupee’s stability in the near term.
The broader economic outlook will continue to shape the rupee’s trajectory. In the first seven months of FY25 (July–January), Pakistan maintained a cumulative current account surplus of $682 million. However, January 2025 posted a deficit of $420 million, compared to $404 million in January 2024. The rising deficit and increased import costs pose challenges to the rupee, making its future movement closely tied to upcoming fiscal and monetary policy decisions. Investors and market participants will be closely watching the rupee-dollar exchange rate amid evolving economic conditions.
