Karachi, July 17, 2025 – The Pakistani rupee closed near PKR 285 against the US dollar in the interbank foreign exchange market on Thursday, signaling continued pressure from rising dollar demand.
The rupee ended the day at PKR 284.97, slightly weaker than the previous day’s closing of PKR 284.96 in the interbank market.
Currency analysts linked the marginal depreciation of the rupee to a surge in dollar demand driven by import and corporate sector payments at the start of the new fiscal year. This increase in outflows has kept the rupee under consistent pressure, despite improving macroeconomic indicators.
Interestingly, the rupee weakened even as Pakistan’s foreign exchange reserves reached a significant milestone. According to the State Bank of Pakistan (SBP), the country’s reserves surpassed the $20 billion mark for the first time since March 2022. As of July 4, 2025, SBP reported reserves of $20.029 billion—an increase of $1.938 billion over the previous week. This improvement came on the back of multilateral inflows and record-high remittances.
Overseas Pakistanis have played a critical role in supporting the rupee. In fiscal year 2024–25, remittance inflows surged to $38.3 billion, reflecting a substantial 26.6% year-on-year growth. These strong inflows have helped stabilize the interbank market, even amid ongoing external debt obligations.
The Pakistan Bureau of Statistics (PBS) also reported positive trade figures. The trade deficit narrowed by 9.47% in June 2025, indicating a healthier balance between imports and exports. This improvement is seen as a favorable sign for the rupee, potentially reducing pressure in the interbank market in the medium term.
Despite these encouraging developments, experts caution that volatility may persist if demand for the dollar remains unchecked. Maintaining a balance in external payments is crucial for long-term rupee stability.
Overall, while short-term challenges persist, the broader outlook for the Pakistani rupee remains cautiously optimistic. With firm fundamentals, rising reserves, and robust remittances, the interbank market may gradually regain equilibrium, paving the way for a more stable exchange rate environment.