Karachi, July 25, 2025 – The Pakistani rupee extended its upward momentum on Friday, closing stronger at PKR 283.45 against the US dollar in the interbank foreign exchange market.
This marks a significant gain of 77 paisas compared to the previous day’s closing rate of PKR 284.22. Over the past three trading sessions, the rupee has appreciated by a total of PKR 1.52 against the dollar, reflecting a notable recovery.
Currency experts attributed this continued strength to effective interbank demand management, a steady rise in export proceeds, and robust inflows from overseas Pakistanis. These factors have boosted foreign currency liquidity, reducing pressure on the rupee and supporting its appreciation.
Interestingly, the rupee strengthened despite a slight decline in weekly foreign exchange reserves. The State Bank of Pakistan reported that total forex reserves dropped by $39 million, reaching $19.918 billion by the week ending July 18, 2025, down from $19.957 billion a week earlier. The SBP’s own reserves declined by $69 million to $14.457 billion, largely due to debt servicing and routine outflows.
A key driver of the rupee’s stability has been the record surge in workers’ remittances. In FY 2024–25, remittance inflows touched an all-time high of $38.3 billion—marking a 26.6% year-on-year increase. This influx has played a critical role in supporting the country’s external account.
Additionally, the narrowing of Pakistan’s trade deficit has strengthened the rupee further. The Pakistan Bureau of Statistics reported a 9.47% reduction in the trade gap in June 2025, driven by stronger exports and prudent import controls.
The dollar’s decline in the local market signals growing confidence in the rupee and improved foreign exchange stability.