Karachi, June 27, 2025 — The Pakistani rupee recorded a slight dip against the US dollar on Friday as increased demand for the greenback emerged due to year-end import and corporate settlement requirements.
The rupee weakened by five paisas, closing at PKR 283.72 per dollar in the interbank foreign exchange market, compared to Thursday’s closing of PKR 283.67.
Currency dealers and financial analysts attributed the rupee’s marginal fall to routine end-of-fiscal-year pressures. As importers and corporations rush to clear dollar-denominated obligations before June 30, the demand for the dollar typically surges, exerting pressure on the local currency.
Interestingly, the rupee remained relatively stable despite a major drop in foreign exchange reserves, as reported by the State Bank of Pakistan (SBP) just a day earlier. According to SBP data, the central bank’s reserves fell by $2.657 billion during the week ending June 20, 2025, bringing total reserves down to $9.06 billion. This decline was largely attributed to external debt repayments, including significant commercial borrowings.
However, the SBP also announced a silver lining. The central bank received fresh inflows this week, including $3.1 billion in government commercial loans and over $500 million in multilateral funding. These inflows are expected to be reflected in the official foreign exchange reserves data for the week ending June 27, potentially bolstering the rupee and offsetting recent losses against the dollar.
Despite the rupee’s slight slip, Pakistan’s external sector shows signs of resilience. One of the most encouraging developments has been the sharp rise in workers’ remittances. The SBP reported that remittance inflows surged to $34.9 billion during the first 11 months of FY25—an impressive 28.8% year-on-year increase. In May alone, the country received $3.7 billion in remittances, significantly improving dollar liquidity and providing much-needed support to the rupee.
Market analysts are cautiously optimistic, noting that the rupee’s performance in the coming weeks will hinge on the continuation of dollar inflows, prudent fiscal management, and regional stability. For now, the rupee’s relative calm amid high dollar demand suggests underlying strength and improved market confidence.