Karachi, June 30, 2025 – The Pakistani rupee ended the fiscal year 2024–25 on a stable note, closing at PKR 283.76 against the US dollar in the interbank foreign exchange market on Monday.
This marks a marginal decline of 4 paisas from Friday’s close of PKR 283.72 per dollar.
Currency experts attributed the rupee’s minor depreciation to increased dollar demand ahead of fiscal year-end payments. Traditionally, June witnesses a rush by importers and corporations to settle their foreign obligations, amplifying dollar outflows and applying short-term pressure on the rupee.
Despite these pressures, the rupee remained largely steady, reflecting improved market resilience. Analysts believe the local currency’s relative strength came against the odds, particularly following a significant drop in the State Bank of Pakistan’s (SBP) foreign exchange reserves. As per SBP data, reserves fell by $2.657 billion in the week ending June 20, bringing the total down to $9.06 billion. The decline was primarily due to large-scale external debt repayments, including commercial borrowings.
However, the SBP highlighted positive developments that could strengthen the rupee. The central bank confirmed receiving $3.1 billion in fresh government commercial loans along with over $500 million in multilateral support during the last week of June. These inflows are expected to appear in the next reserves report and may provide renewed support to the rupee against the dollar.
Another positive indicator for the rupee has been the sharp rise in workers’ remittances. From July 2024 to May 2025, Pakistan received $34.9 billion in remittances—a robust 28.8% increase compared to the same period last year. In May alone, inflows stood at $3.7 billion, which significantly boosted dollar liquidity in the market.
Going forward, currency watchers note that the rupee’s trajectory will depend on sustained dollar inflows, improved economic governance, and geopolitical stability. For now, the rupee’s stable close despite elevated dollar demand suggests that confidence in the currency is gradually being restored.
With fiscal year 2025–26 beginning tomorrow, both the rupee and dollar will remain under close scrutiny as markets respond to evolving macroeconomic signals and central bank interventions.