Karachi, September 5, 2025 – The Pakistani rupee continued its steady momentum in the interbank foreign exchange market on Friday, closing at PKR 281.65 against the dollar.
This marks a slight but consistent improvement, as the rupee gained 2 paisas from the previous day’s closing of PKR 281.67 to the dollar.
Currency market analysts noted that the gradual strengthening of the rupee reflects a mix of positive economic signals and regulatory interventions. The State Bank of Pakistan (SBP), along with other financial authorities, has intensified its crackdown on illegal currency exchange operators, which has helped stabilize the demand and supply balance of the dollar in the open market.
Another key factor supporting the rupee has been the improvement in foreign exchange reserves. Official data shows reserves climbed by $42 million, reaching $19.66 billion by the week ending August 29, 2025, compared to $19.62 billion a week earlier. Analysts highlighted that this rise, though modest, plays a crucial role in boosting market confidence and curbing volatility.
Furthermore, strong inflows from overseas workers’ remittances and higher export receipts have provided additional backing to the rupee. These inflows have lessened the pressure of external payments, helping the rupee maintain its position against the dollar.
However, experts also expressed caution. They warned that recent flood-related damages and increasing import requirements could create renewed pressure on the rupee in the coming weeks. At the same time, expected inflows of $1 billion under the Extended Fund Facility (EFF) from the IMF are anticipated to provide further cushion. A successful review scheduled this month will pave the way for Pakistan to secure the next tranche, offering additional support to the rupee-dollar parity.