Karachi, August 18, 2025 – The Pakistani rupee continued its upward trajectory on Monday, closing near PKR 282 against the US dollar in the interbank market.
The local currency gained 4 paisas, improving from its previous close of PKR 282.06. This positive movement is attributed to several key factors that have bolstered the rupee’s standing.
Currency experts point to a healthy influx of export receipts and remittances, which have successfully counteracted the demand for dollars for import payments. Furthermore, the State Bank of Pakistan (SBP) and other law enforcement agencies have taken decisive action against illegal exchange houses, which has been instrumental in maintaining the rupee’s upward momentum. The country’s stable foreign exchange reserves have also played a crucial role. According to SBP data from last Friday, Pakistan’s weekly reserves remained stable at $19.497 billion.
Supporting Policy and Economic Factors
The SBP’s recent policy decisions have significantly supported the rupee. The central bank’s move to abolish the lien requirement on exporters under the “Delayed Realization of Export Proceeds” framework has eased liquidity constraints and boosted market confidence. This policy shift, which rescinded the restrictive FE Circular No. 02 of March 31, 2023, is seen as a major win for exporters. Additionally, the SBP has tightened anti-money laundering protocols to curb illicit dollar movements in foreign trade, further stabilizing the currency. Investor sentiment has also been buoyed by data showing over $3 billion in foreign inflows during July 2025, including a 7.4% year-on-year increase in workers’ remittances.
Despite these gains, challenges remain. The Pakistan Bureau of Statistics reported a significant year-on-year surge in both imports and exports for July 2025, with imports increasing by 29.25% to $5.45 billion and exports climbing by 17% to $2.70 billion. Experts emphasize that sustained growth in remittances and exports, along with continued vigilance over dollar outflows, will be essential for maintaining the rupee’s strength.