Karachi, November 14, 2024 – The Pakistani Rupee strengthened marginally against the US dollar on Wednesday, closing at PKR 277.74 in the interbank market, a slight improvement of 11 paisas from the previous day’s close of PKR 277.85.
This minor uptick reflects underlying support from rising remittance inflows and steady export performance, helping stabilize the currency amid external economic pressures.
Currency analysts link the rupee’s gains to a robust increase in remittances from overseas Pakistanis, which rose by an impressive 35% year-on-year in the first four months of the 2024-25 fiscal year (July-October). According to data from the State Bank of Pakistan (SBP), remittances during this period reached $11.85 billion, up from $8.79 billion in the same timeframe last year. This substantial growth underscores the vital role of remittances in supporting Pakistan’s foreign exchange reserves and cushioning the rupee against market volatility.
The SBP’s foreign exchange reserves also saw a modest increase last week, rising by $19 million to a total of $11.175 billion. While this gain may appear minor, it signals the central bank’s ongoing efforts to stabilize reserves, an essential factor for maintaining investor confidence and managing currency fluctuations. Experts highlight that maintaining robust reserves is critical to withstanding potential currency pressures and economic challenges.
In addition to remittance inflows, a steady export performance has further contributed to the rupee’s stability. Analysts note that strong export receipts, alongside growing remittances, are creating a supportive environment for the currency, which is essential as Pakistan navigates global economic uncertainties. The government’s continued focus on export growth and sound reserve management reflects its commitment to strengthening the country’s economic outlook.
Looking ahead, experts remain cautiously optimistic about the rupee’s prospects. They suggest that the currency could maintain stability, or even strengthen slightly, if remittance inflows continue to grow and exports remain steady. However, sustained progress in these areas is essential to counteract potential external pressures that may impact the rupee’s performance in the coming months.
