Karachi, July 14, 2025 – The Pakistani rupee witnessed a notable decline on Monday, slipping to PKR 284.72 against the dollar in the interbank foreign exchange market.
This 26 paisas drop from the previous closing of PKR 284.46 marks a fresh bout of pressure on the local currency due to a resurgence in dollar demand.
According to currency dealers, the demand for the dollar surged significantly as importers and corporate entities resumed their foreign payments after the start of the new fiscal year 2025–26. The heightened activity came after weeks of restrained transactions amid budget-related uncertainties, pushing the rupee downward despite improving macroeconomic indicators.
Analysts say this rupee depreciation is driven by seasonal factors. Importers traditionally accelerate dollar buying early in the fiscal year, while multinational companies are increasingly converting their rupee holdings into dollar outflows to repatriate profits. These trends have collectively strained the interbank supply of foreign currency.
Interestingly, the fall in the rupee comes at a time when Pakistan’s external account has shown signs of improvement. The State Bank of Pakistan (SBP) reported that the country’s foreign exchange reserves have surpassed the $20 billion threshold—reaching $20.029 billion as of July 4, 2025. This is the first time since March 2022 that reserves have crossed this level, fueled by a weekly increase of $1.938 billion.
Furthermore, robust inflows from overseas Pakistanis are supporting the economy. The SBP revealed that workers’ remittances soared to a record-breaking $38.3 billion during FY 2024–25, marking a 26.6% year-on-year increase. These remittances provide critical liquidity in foreign exchange and are expected to act as a buffer against rupee volatility.
The Pakistan Bureau of Statistics (PBS) also reported a 9.47% decline in the trade deficit for June 2025, another encouraging sign. However, experts warn that unless dollar demand subsides or is better managed, the rupee may continue to face intermittent pressure despite these positives.
In conclusion, while the macroeconomic backdrop is gradually improving, short-term fluctuations in rupee-dollar parity remain closely tied to market demand and investor sentiment.