Karachi, February 15, 2026 – The Pakistani rupee is expected to remain largely stable in the coming week, as importer demand for dollars is being balanced by steady inflows, particularly remittances from overseas workers, according to currency market dealers.
Market participants anticipate that the local currency will trade within a narrow range in the near term, supported by healthy remittance inflows and improving sentiment around Pakistan’s economic outlook. Positive macroeconomic indicators and renewed foreign investor interest are also lending support to the rupee.
During the past week, the rupee traded in tight bands in the interbank market. It closed at 279.70 per dollar, showing a marginal improvement to 279.62 by Friday, reflecting relative stability in the foreign exchange market.
Remittances and Reserves Support Stability
Pakistan’s remittances increased 15.4 percent year-on-year in January to $3.5 billion, providing a significant cushion to the external account. However, on a month-on-month basis, inflows dipped by 4.0 percent. Cumulatively, remittances rose 11.3 percent to $23.2 billion during the first seven months of fiscal year 2026, highlighting sustained support from overseas Pakistanis.
Meanwhile, the State Bank of Pakistan (SBP) reported a $21 million increase in its foreign exchange reserves, which reached $16.178 billion as of February 6. The country’s total liquid foreign reserves climbed by $36 million to $21.375 billion, while commercial banks’ reserves rose by $15 million to $5.197 billion.
External Financing and Investor Confidence
Further supporting market confidence, reports indicate that the United Arab Emirates (UAE) has agreed in principle to roll over a $2 billion deposit for a short-term period of two months, providing temporary relief to Pakistan’s external financing needs.
In addition, a Bloomberg report revealed that Pakistan recorded its largest monthly net foreign inflows into sovereign bonds in 19 months, with investments totaling $176 million in January. This marks a sharp reversal from a $50 million net outflow in January last year, underscoring a notable improvement in investor sentiment toward Pakistan’s debt market.
Outlook
Economists believe that the combination of rising remittances, improving foreign reserves, rollover of external deposits, and renewed foreign investment interest could help keep the rupee relatively stable in the near term. While global market volatility and import demand remain potential risks, current indicators suggest a cautiously optimistic outlook for the local currency in the week ahead.