Karachi, December 30, 2024 – The Pakistani rupee experienced a slight decline of one paisa against the US dollar in Monday’s interbank foreign exchange market, closing at PKR 278.48 compared to Friday’s closing rate of PKR 278.47. Despite this minor dip, the rupee demonstrated resilience amid mounting pressures.
Currency experts attributed the rupee’s relative stability to sufficient dollar inflows, which helped counterbalance increased demand for imports and corporate payments. The slight decline reflects typical market fluctuations rather than significant economic distress.
The State Bank of Pakistan (SBP) recently reported a drop in foreign exchange reserves, which fell by $262 million within a week. As of December 20, 2024, Pakistan’s total foreign exchange reserves stood at $16.371 billion, down from $16.633 billion on December 13, 2024. This decline presents challenges in maintaining external stability, yet the rupee managed to sustain its position in the interbank market, showcasing a degree of resilience.
Encouragingly, Pakistan’s external sector has shown signs of improvement. For the first five months of the fiscal year 2024-25 (July-November), the country recorded a current account surplus of $944 million, a significant turnaround from the $1.68 billion deficit during the same period last year. This positive shift has lent support to the rupee and contributed to strengthening market confidence.
Additionally, the rupee has benefited from robust growth in remittances, which have alleviated external financial pressures. Between July and November 2024, remittances surged by 34%, reaching $14.77 billion compared to $11.05 billion in the corresponding period of 2023. This substantial increase in foreign inflows has bolstered domestic liquidity and played a critical role in stabilizing the rupee’s value.
Despite challenges such as declining reserves, the rupee remains supported by improved trade balances and stronger inflows from overseas Pakistanis. These developments indicate that the rupee’s trajectory, while influenced by external pressures, is underpinned by positive economic trends. Stakeholders continue to monitor these dynamics closely as Pakistan navigates its financial and economic landscape.