Karachi, April 9, 2025 — The Pakistani rupee continued its downward trajectory on Wednesday, settling at PKR 280.78 against the dollar in the interbank market, marking a slight drop of 5 paisas from the previous close of PKR 280.73.
This latest decline highlights ongoing pressure on the rupee, which has been struggling in recent sessions. According to currency experts, the weakening of the rupee is primarily driven by heightened demand for the dollar, triggered by an increase in import activity and a global economic shift. The situation has been further complicated by newly imposed tariffs on US imports, as introduced by former President Donald Trump, which have rattled global financial markets and contributed to a volatile currency trading environment.
A key factor behind the increased dollar demand is the recent resurgence in Pakistan’s industrial sector. Following the government’s move to slash electricity tariffs, industries have accelerated production. While this is a positive sign for economic recovery, it has also led to a spike in the import of raw materials—raising the need for more dollars and thereby placing additional strain on the rupee.
The rupee has now recorded consecutive sessions of losses, with analysts warning that continued import-led dollar demand could keep the local currency under pressure. However, there are signs of potential relief ahead. Analysts are hopeful that upcoming remittance inflows and export earnings will provide much-needed support to the rupee. Furthermore, Pakistan’s active negotiations with the International Monetary Fund (IMF) could unlock new financial assistance, which may help stabilize the dollar-rupee parity in the coming weeks.
Despite the rupee’s current challenges, market watchers believe that with careful fiscal management and consistent external inflows, the currency can find some footing. Nonetheless, they caution that the rupee’s stability remains closely tied to Pakistan’s ability to manage its trade deficit and balance the benefits of industrial growth against the risks of a widening current account gap.
In the short term, all eyes remain on the interplay between dollar availability and rupee resilience, as policymakers work to ensure that economic recovery does not come at the cost of exchange rate volatility.