Karachi, March 28, 2024 – The Pakistani Rupee concluded its trading session on Thursday with a stronger position against the US Dollar, settling at PKR 278.03 in the interbank foreign exchange market.
This modest gain of PKR 0.01 from the previous day’s closing of PKR 278.04 reflects the currency’s resilience amid evolving economic dynamics.
Currency analysts attribute the rupee’s appreciation to several key factors that underscore Pakistan’s improving economic landscape. One primary driver of this upward trend is the surge in remittances and export receipts. Experts highlight Pakistan’s current account surplus of $128 million in February 2024 as a significant indicator of the nation’s fiscal health, driven by robust contributions from remittances and exports.
Recent data released by the State Bank of Pakistan (SBP) reinforces the positive trajectory of Pakistan’s economy, with the Current Account Deficit (CAD) witnessing a remarkable reduction of 74 percent, dropping to $999 million during the initial eight months of fiscal year 2023-24. Such a substantial decrease reflects the efficacy of policy interventions aimed at strengthening Pakistan’s fiscal position and reducing external vulnerabilities.
Moreover, analysts emphasize the positive impact of recent inflows from remittances, export receipts, and anticipated funds from the International Monetary Fund (IMF). Weekly foreign exchange reserves, as of March 8, 2024, surged to $13.151 billion, indicating growing investor confidence in Pakistan’s economic prospects.
The nation’s economic resilience is further highlighted by significant growth in workers’ remittances and exports. February 2024 witnessed a 13 percent Year-on-Year (YoY) increase in remittances, totaling $2.25 billion, while exports registered a commendable 9 percent growth during the first eight months of fiscal year 2023-24, reaching $20.35 billion. These growth trajectories instill optimism for increased trade and economic activity, positioning Pakistan favorably on the global stage.
Overall, the strengthening of the Pakistani Rupee against the US Dollar reflects positive economic indicators and underscores Pakistan’s continued efforts towards sustainable growth and stability in its currency market. As the nation navigates through economic challenges, prudent policy measures and robust fundamentals are expected to sustain the upward momentum, fostering confidence among investors and stakeholders alike.
