Karachi, April 1, 2024 – The Pakistani Rupee concluded on a firmer note on Monday, closing at PKR 277.94 against the US dollar at the interbank foreign exchange market.
The rupee marked a nominal gain of PKR 0.01 from last Friday’s closing rate of PKR 277.95 against the dollar in the interbank foreign exchange market.
Currency experts noted the resilience of the local unit against the greenback, despite the reopening of the currency market after the weekly holidays. The upward trajectory of the rupee is attributed to several factors that underscore Pakistan’s improving economic landscape.
One significant factor contributing to the rupee’s strength is the surge in remittances and export receipts, which have substantially bolstered the nation’s fiscal health. Pakistan recorded a current account surplus of $128 million in February 2024, indicating robust performance driven by remittances and exports.
Recent data released by the State Bank of Pakistan (SBP) further validates the positive momentum in Pakistan’s economy. The Current Account Deficit (CAD) witnessed a remarkable reduction of 74 percent, plummeting to $999 million during the initial eight months of fiscal year 2023-24. This significant decrease reflects the effectiveness of policy interventions aimed at fortifying Pakistan’s fiscal position and mitigating external vulnerabilities.
Analysts emphasize the favorable impact of recent inflows from remittances, export receipts, and anticipated funds from the International Monetary Fund (IMF). These inflows collectively contribute to bolstering Pakistan’s foreign exchange reserves and strengthening its economic resilience.
According to the State Bank of Pakistan (SBP), Pakistan’s foreign exchange reserves recorded a notable increase of $37 million for the week ending March 22, 2024. The country’s reserves surged to $13.428 billion, up from $13.391 billion in the previous week. This uptick underscores positive developments in Pakistan’s balance of payments and reflects confidence in the nation’s economic prospects.
The appreciation of the Pakistani Rupee against the US Dollar signifies growing investor confidence and stability in the currency market. It also augurs well for businesses engaged in international trade, as a stronger local currency enhances purchasing power and reduces import costs.
Looking ahead, policymakers and economic stakeholders will closely monitor key indicators to sustain the positive momentum and ensure a conducive environment for economic growth. Efforts to further strengthen Pakistan’s export sector, attract foreign investment, and maintain prudent fiscal policies will be pivotal in sustaining the upward trajectory of the Pakistani Rupee and fostering long-term economic stability.
