Karachi, February 8, 2026 – The Pakistani rupee is expected to gain strength against the US dollar in the coming weeks, supported by higher remittance inflows ahead of the holy month of Ramadan and improving export performance.
Currency experts noted that overseas Pakistanis traditionally increase money transfers to support their families during Ramadan, leading to a seasonal surge in remittances. These inflows help ease pressure on the country’s foreign exchange market and provide stability to the local currency. In addition, a steady recovery in exports is also contributing to improved dollar supply, further strengthening the rupee’s outlook.
During the past week, the rupee showed mild appreciation in the interbank market. It closed at 279.76 against the US dollar on Monday and gradually strengthened to 279.71 by Friday, reflecting balanced market conditions. Dealers expect the rupee to remain largely stable in the near term, with limited fluctuations as consistent inflows offset import-related dollar demand.
Rising foreign exchange reserves are also lending support to the local unit. According to official data, the State Bank of Pakistan’s reserves increased by $56 million to $16.157 billion for the week ending January 30. Meanwhile, the country’s total liquid foreign reserves rose by $45 million to $21.339 billion, although reserves held by commercial banks declined slightly by $11 million to $5.182 billion.
State Bank Governor Jameel Ahmad recently shared an optimistic outlook on remittances, forecasting inflows of $42 billion in FY26, up from a record $38 billion last year. He attributed this expected growth largely to seasonal factors, including increased transfers during Ramadan and the upcoming Eid festivals, which traditionally boost foreign currency inflows into Pakistan.