Karachi, July 30, 2025 – The Pakistani rupee continued its upward trajectory for the sixth straight session on Wednesday, gaining 10 paisas against the US dollar amid a government-led crackdown on unauthorized currency dealers.
The local unit closed at PKR 282.95 in the interbank market, compared to the previous day’s closing rate of PKR 283.05.
Since July 22, when it stood at PKR 284.97, the rupee has appreciated by a total of PKR 2.02 against the dollar, reflecting renewed confidence in formal currency channels. Analysts attributed the positive trend to enhanced enforcement efforts, including tighter monitoring of illegal exchange operations, which have diverted flows toward regulated markets.
Beyond enforcement, multiple economic factors have supported the rupee’s momentum. A recent upgrade in Pakistan’s credit outlook by Fitch Ratings has improved investor sentiment. Simultaneously, steady inflows from exports and remittances have helped ease pressure on dollar demand in the interbank market.
Despite a marginal dip in foreign exchange reserves, the rupee remained resilient. According to the State Bank of Pakistan (SBP), total reserves declined by $39 million to $19.918 billion for the week ending July 18, while SBP’s own reserves dropped by $69 million to $14.457 billion, largely due to scheduled debt repayments.
Workers’ remittances have played a critical role in stabilizing the currency. For FY 2024–25, Pakistan recorded $38.3 billion in remittances—a 26.6% year-on-year surge—helping reduce the nation’s reliance on external dollar borrowing.
In addition, a narrower trade deficit has supported the rupee. The Pakistan Bureau of Statistics reported a 9.47% reduction in the trade gap for June, driven by increased exports and prudent import controls. This sustained appreciation trend suggests improving economic fundamentals and growing market trust in the local currency.