Karachi, November 21, 2024 – After three consecutive days of losses, the Pakistani rupee regained 8 paisas against the US dollar on Thursday, closing at PKR 277.96 in the interbank market compared to the previous day’s rate of PKR 278.04.
Currency experts attributed the rupee’s slight recovery to stronger inflows from export receipts and workers’ remittances. They expressed optimism about the currency’s long-term stability, supported by Pakistan’s improving current account balance.
The State Bank of Pakistan (SBP) reported a current account surplus of $349 million in October 2024, a significant turnaround from last year’s deficit during the same month. This marks the third consecutive month of surplus, primarily driven by a 24% year-on-year surge in remittances, which totaled $11.85 billion in the first four months of FY2024-25—a 35% increase from the previous year.
Rising export receipts have also played a crucial role in stabilizing the rupee. Official foreign reserves increased by $84 million to $11.257 billion, providing some relief for the country’s external financial obligations.
Market observers noted that stability in the exchange rate has also improved investor confidence, as evident from a slight recovery in the equity markets. They emphasize that sustaining this momentum will require addressing structural challenges in Pakistan’s export sector and reducing dependence on short-term inflows.
However, challenges remain as global economic uncertainty, volatile commodity prices, and geopolitical tensions could disrupt further progress. Analysts highlight the need for policies that enhance export competitiveness, attract foreign investment, and diversify remittance sources to ensure sustainable economic growth.
The rupee’s short-term performance will depend on maintaining steady inflows from remittances and exports. Policymakers are urged to capitalize on the current account surplus to strengthen Pakistan’s economic resilience and manage external vulnerabilities effectively.
The experts said that due to economic recovery as envisaged through economic indicator would escalate dollar demand for import payments, which may pressure the rupee value in coming days.
