Karachi, May 29, 2025 — The Pakistani rupee registered a modest gain against the US dollar in Thursday’s interbank foreign exchange trading, closing at PKR 282.07 compared to the previous close of PKR 282.17. This slight appreciation comes after a day of closure in the interbank market on May 28 in observance of Youm-e-Takbeer, a national holiday.
Currency dealers noted that the rupee’s mild recovery was supported by an uptick in dollar supply within the interbank system. A key contributor was the seasonal surge in workers’ remittances, particularly from overseas Pakistanis sending funds to support families traveling for Hajj. These dollar inflows strengthened the rupee and ensured smoother interbank settlements.
In addition, improved export receipts have contributed to a more favorable dollar-rupee balance, easing pressure on the interbank foreign exchange reserves. Analysts also pointed to softening global oil prices as a crucial factor reducing Pakistan’s import bill and slowing the pace of dollar outflows from the interbank system.
However, the rupee’s position remains cautiously optimistic. The interbank market has seen heightened activity from importers anticipating new duties or tax hikes in the upcoming federal budget. This has led to increased demand for the dollar, dampening the rupee’s upward trajectory in interbank dealings.
Another factor bolstering confidence in the rupee was the recent data released by the State Bank of Pakistan (SBP), which reported a $1.035 billion rise in foreign exchange reserves, bringing the total to $16.65 billion as of May 16. These inflows, primarily driven by funding from the International Monetary Fund (IMF), have stabilized the dollar supply in the interbank space.
From a macroeconomic lens, Pakistan’s external accounts have shown improvement. The current account posted a surplus of $1.88 billion for July–April FY25, a sharp reversal from the $1.34 billion deficit recorded during the same period last year. With remittances soaring 31% to $31.2 billion and exports growing 6.25%, the rupee has found fundamental support against the dollar in the interbank environment.
Yet, challenges linger. A nearly 9% increase in the trade deficit—now at $21.35 billion—largely driven by rising imports, continues to pose downside risks for the rupee, particularly within the dollar-dominated interbank trading arena.