Karachi, November 13, 2024 – The Pakistani rupee showed slight improvement in the interbank market on Wednesday, gaining 8 paisas against the US dollar. The rupee ended at PKR 277.85 to the dollar, up from the previous day’s closing of PKR 277.93, as remittance inflows and strong export receipts bolstered the local currency.
Currency analysts attribute the rupee’s gain to a steady rise in remittances from overseas Pakistanis and an encouraging performance in exports. In the first four months of the current fiscal year (July-October 2024-25), remittances surged by an impressive 35% year-on-year, reaching $11.85 billion compared to $8.79 billion in the same period last year, according to data from the State Bank of Pakistan (SBP). This increase underscores the crucial role remittances play in stabilizing Pakistan’s economy, particularly in supporting foreign exchange reserves and buffering the rupee from volatility.
In addition to remittance inflows, the SBP’s foreign exchange reserves saw modest growth last week, rising by $19 million to reach $11.175 billion. Though the increase may seem minor, it signals the central bank’s ongoing efforts to strengthen reserves, a key aspect of sustaining investor confidence and countering sudden currency pressures.
Healthy export performance also contributed to the rupee’s support. The combination of strong export receipts and remittance inflows creates a foundation for currency stability, which analysts believe is crucial for withstanding external pressures on Pakistan’s economy. The government’s consistent focus on boosting exports and managing reserves adds to a more favorable outlook for the rupee.
Looking forward, experts are cautiously optimistic about the rupee’s performance. They emphasize that continued remittance growth and steady export earnings are essential to Pakistan’s foreign exchange stability, especially amid global economic uncertainties. With effective reserve management, a rise in remittances, and stable exports, the rupee may continue to hold steady or even improve against the dollar in the near term.
As Pakistan navigates an evolving financial landscape, these positive trends in remittances and exports signal a more resilient economic outlook, creating optimism for the rupee’s stability.
