Karachi, March 20, 2025 – The Pakistani rupee experienced a slight decline against the US dollar in the interbank market on Thursday, influenced by rising foreign payment obligations and sustained demand for the greenback.
The rupee slipped by two paisas, closing at PKR 280.23 per dollar compared to the previous day’s closing rate of PKR 280.21. Although the decline was nominal, currency analysts attributed the movement to increased import-related outflows, which placed pressure on the rupee throughout the trading session. However, substantial inflows from workers’ remittances helped cushion the impact, preventing a more significant depreciation against the dollar.
Market experts warn that the rupee may face renewed volatility after Eid, as import bills surge and external debt repayments come due. Pakistan’s current account deficit for February has already placed additional strain on the rupee, with rising external liabilities fueling a persistent demand for the dollar in the interbank market. The country’s dependence on foreign funding remains a crucial determinant of the rupee’s trajectory in the coming weeks.
Persistent economic challenges, including dwindling foreign exchange reserves, continue to weigh on the rupee. Experts caution that if forex reserves continue to decline, further depreciation of the rupee against the dollar is likely. The depletion of reserves limits Pakistan’s ability to manage external debt repayments, making it imperative for the country to secure fresh inflows to stabilize the rupee.
According to data from the State Bank of Pakistan (SBP), the country’s official foreign exchange reserves fell by $152 million over the past week. As of March 7, 2025, reserves stood at $11.098 billion, down from $11.250 billion on February 28, 2025. This downward trend raises concerns over Pakistan’s ability to maintain the rupee’s value against the dollar and meet its external financial obligations effectively.
If policymakers secure new foreign inflows or successfully implement measures to limit imports, the rupee may regain some stability. Otherwise, persistent demand for the dollar could push the rupee further downward. Close monitoring of foreign exchange movements and economic policies will be crucial in maintaining balance in the currency market.