Karachi, December 26, 2024 – The Pakistani rupee appreciated marginally against the US dollar on Thursday, closing at PKR 278.37 despite persistent demand for the greenback from importers and corporates. The currency strengthened by 10 paisas compared to its previous closing of PKR 278.47 on December 24, 2024.
Currency experts highlighted the rupee’s resilience amid heightened dollar demand, attributing its rebound to robust inflows from export receipts and home remittances. These factors have provided essential support to the currency, enabling it to withstand external pressures as businesses settle substantial year-end payments.
The rupee’s performance aligns with a cautiously optimistic outlook for the local economy. Recent data from the State Bank of Pakistan (SBP) points to a modest increase in foreign exchange reserves. As of December 13, 2024, Pakistan’s total liquid reserves stood at $16.633 billion, reflecting a $32 million uptick compared to the previous week. While the SBP’s reserves slightly dipped to $12.082 billion from $12.51 billion, the overall trend indicates gradual recovery.
A notable contributor to the rupee’s stabilization is the improvement in Pakistan’s external sector. During the first five months of the fiscal year 2024-25 (July-November), the country achieved a current account surplus of $944 million, a sharp reversal from the $1.68 billion deficit recorded during the same period last year. This turnaround is driven by stronger trade balances and enhanced foreign inflows, underscoring the country’s improving economic fundamentals.
Additionally, the growth in remittances has played a pivotal role in alleviating external financial pressures. Between July and November 2024, remittances surged by an impressive 34%, reaching $14.77 billion compared to $11.05 billion in the corresponding period of 2023. This rise has bolstered domestic liquidity, supported the foreign exchange market, and contributed significantly to the rupee’s stability.
With improving economic indicators and strong external inflows, the rupee’s outlook remains optimistic, though challenges in the global financial environment persist.