Karachi, March 25, 2024 – The Pakistani Rupee exhibited resilience on Monday as it made a nominal gain against the US Dollar, closing at PKR 278.13 in the interbank foreign exchange market.
This slight appreciation of PKR 0.01 from last Friday’s closing of PKR 278.14 reflects the underlying stability in Pakistan’s economy.
Experts in the currency market attribute the stable rupee against the dollar to a confluence of factors, chief among them being the surge in remittances and export receipts. These factors have played a pivotal role in Pakistan achieving a current account surplus of $128 million in February 2024, a remarkable turnaround from the deficit experienced in the previous year. This achievement underscores the effectiveness of Pakistan’s economic policies in fostering sustainable growth.
Recent data released by the State Bank of Pakistan (SBP) further bolsters confidence in the nation’s economic trajectory. The significant reduction of 74 percent in the Current Account Deficit (CAD), dropping to $999 million during the initial eight months of fiscal year 2023-24, reflects the success of policy interventions aimed at strengthening Pakistan’s fiscal health.
Finance Minister Muhammad Aurangzeb acknowledges the crucial support provided by China in maintaining Pakistan’s economic stability. The rollover of safe deposits by China has bolstered Pakistan’s foreign exchange reserves, thereby contributing to the stability of the rupee. Minister Aurangzeb expresses gratitude to the Chinese leadership for their steadfast support, emphasizing the importance of SAFE deposits and the refinancing of commercial loans in fortifying Pakistan’s economic foundation.
Currency analysts highlight the positive impact of recent inflows from remittances, export receipts, and anticipated funds from the International Monetary Fund (IMF). As of March 8, 2024, weekly foreign exchange reserves have surged to $13.151 billion, indicating growing confidence among investors and stakeholders in Pakistan’s economy.
Pakistan’s economic resilience is further exemplified by significant growth in workers’ remittances and exports. February 2024 witnessed a 13 percent Year-on-Year (YoY) increase in remittances, totaling $2.25 billion, while exports registered a commendable 9 percent growth during the first eight months of fiscal year 2023-24, reaching $20.35 billion. This upward trajectory in remittances and exports augurs well for Pakistan’s economic outlook, instilling optimism for heightened trade and economic activity in the foreseeable future.
