Karachi, August 29, 2025 – The Pakistani rupee continued its upward trajectory on Friday, appreciating by three paisas against the dollar, and settling at PKR 281.77 in the interbank foreign exchange market.
The latest gain follows Thursday’s closing rate of PKR 281.80 per dollar, indicating a stable yet positive momentum for the local currency.
The consistent improvement of the rupee over the past several sessions has been attributed to stronger economic fundamentals, steady inflows of worker remittances, and a notable increase in export proceeds. Analysts also credit prudent intervention by the State Bank of Pakistan (SBP) for maintaining adequate foreign exchange reserves and ensuring smooth liquidity in the market.
According to SBP data, Pakistan’s foreign exchange reserves climbed by $47 million, reaching $19.618 billion for the week ending August 22, 2025. Of this, the central bank’s reserves rose by $18 million to $14.274 billion, while commercial banks recorded a $27 million increase, bringing their total to $5.344 billion.
Market observers suggest that the rupee could gain further strength if additional inflows from the International Monetary Fund (IMF) materialize under the ongoing Extended Fund Facility (EFF). This would provide much-needed support for external debt repayments and reinforce exchange rate stability.
With the dollar trading within a tight band and the rupee showing resilience, financial experts expect the currency market to maintain a cautiously optimistic outlook in the coming weeks.