Karachi, July 29, 2025 – The Pakistani rupee strengthened for the fifth consecutive session on Tuesday, posting another gain against the dollar in the interbank foreign exchange market.
The rupee closed at PKR 283.05 per dollar, appreciating by 16 paisas from the previous day’s closing of PKR 283.21. Over the last five trading sessions, the rupee has cumulatively gained PKR 1.92, having closed at PKR 284.97 per dollar on July 22, 2025.
Analysts credited this winning streak to a mix of positive developments, including Fitch Ratings’ recent upgrade of Pakistan’s credit outlook. Improved market sentiment, rising export receipts, strong overseas remittances, and better interbank dollar liquidity also played a key role in supporting the rupee.
Despite a slight dip in foreign exchange reserves, the rupee held firm. The State Bank of Pakistan (SBP) reported that total reserves slipped by $39 million to $19.918 billion for the week ending July 18, 2025. SBP’s own reserves fell by $69 million to $14.457 billion, mainly due to scheduled external debt repayments.
A significant factor aiding the rupee’s stability is the record inflow of workers’ remittances. During FY 2024–25, remittances surged to $38.3 billion, marking a 26.6% increase from the previous year. These inflows have bolstered the country’s external accounts and reduced dependency on dollar inflows through borrowing.
Additionally, a narrower trade deficit has further supported the rupee. The Pakistan Bureau of Statistics reported a 9.47% contraction in the trade gap for June 2025, driven by higher exports and controlled imports.
The consistent decline in demand for the dollar reflects growing market confidence in the rupee and signals strengthening economic fundamentals.