Karachi, April 18, 2025 – The Pakistani rupee recorded a minor decline on Friday, slipping by 10 paisas against the US dollar amid rising outflows related to imports and corporate transactions.
The rupee closed at PKR 280.72 per dollar in the interbank market, compared to the previous day’s rate of PKR 280.62.
According to currency market analysts, the increased demand for dollars—primarily driven by import payments and end-of-quarter corporate remittances—placed pressure on the Pakistani rupee. Corporates, especially multinational companies, were actively purchasing dollars to repatriate profits and dividends to their overseas headquarters, a trend commonly observed at the close of financial quarters.
The last trading session of the week also saw a surge in advance dollar bookings, which added to the rupee’s pressure. Analysts noted that many market participants opted to lock in dollar rates ahead of the weekend, anticipating further fluctuations.
Additionally, a dip in the country’s foreign exchange reserves added to negative sentiment in the currency markets. The State Bank of Pakistan (SBP) reported a reduction of $91 million in the national forex reserves for the week ending April 11, 2025. The reserves currently stand at $15.662 billion, down from $15.753 billion the week prior. The decline in reserves reinforces concerns about Pakistan’s ability to manage its external payment obligations in the near term.
Despite the temporary setback, experts remain cautiously optimistic about the future trajectory of the Pakistani rupee. They pointed out several encouraging factors that could support the currency in the coming weeks. These include a surplus in the current account, steady growth in export receipts, and increasing inflows of remittances from overseas Pakistanis.
Analysts suggest that while short-term volatility may persist due to external payments and reserve fluctuations, the underlying macroeconomic indicators are stabilizing. With consistent support from remittances and a narrowing trade deficit, the Pakistani rupee could regain strength, provided no major external shocks occur.
For now, the market continues to keep a close watch on global oil prices, geopolitical developments, and central bank policies, all of which could influence the path of the rupee moving forward.