Karachi, July 28, 2025 – The Pakistani rupee extended its upward momentum for the fourth consecutive session on Monday, strengthening against the dollar in the interbank foreign exchange market.
The rupee appreciated by 24 paisas, closing at PKR 283.21 to the dollar, compared to last Friday’s closing rate of PKR 283.45.
Since July 22, 2025, the rupee has cumulatively gained PKR 1.76 against the dollar, rising from PKR 284.97. Analysts attributed this consistent appreciation to multiple positive developments, including Fitch’s recent upgrade of Pakistan’s credit rating. Market participants also credited the improvement to enhanced interbank demand management, growing export proceeds, and strong remittances from overseas Pakistanis—all contributing to improved foreign exchange liquidity.
Interestingly, the rupee maintained its strength despite a slight weekly decline in foreign exchange reserves. The State Bank of Pakistan (SBP) reported total reserves fell by $39 million to $19.918 billion for the week ending July 18, 2025. The SBP’s own reserves dropped by $69 million to $14.457 billion due to routine external debt servicing.
A major factor bolstering the rupee has been the record increase in workers’ remittances. During FY 2024–25, inflows surged to $38.3 billion—a 26.6% year-on-year rise—providing much-needed support to the country’s balance of payments.
Moreover, Pakistan’s trade deficit narrowed significantly in June 2025. According to the Pakistan Bureau of Statistics, the trade gap shrank by 9.47%, supported by stronger exports and disciplined import controls. This development has further eased pressure on the rupee and curbed demand for the dollar.
The sustained decline of the dollar reflects rising confidence in the rupee and indicates improving macroeconomic stability in the country.