Karachi, March 27, 2024 – The Pakistani Rupee on Wednesday made a modest gain of PKR 0.04 against the US Dollar at closing of interbank foreign exchange market.
The rupee ended at PKR 278.04 to the dollar from previous day’s closing of PKR 278.08 in the interbank foreign exchange market.
Analysts attribute this appreciation to several key factors that underscore the country’s improving economic landscape.
One primary factor contributing to the rupee’s appreciation is the surge in remittances and export receipts, according to currency market experts. Pakistan’s current account surplus of $128 million in February 2024 is a testament to the substantial contributions of remittances and exports to the nation’s fiscal health. This turnaround from a deficit in the previous year highlights the effectiveness of Pakistan’s economic policies in fostering growth and stability.
Recent data released by the State Bank of Pakistan (SBP) reinforces the positive trajectory of Pakistan’s economy. The Current Account Deficit (CAD) has witnessed a remarkable reduction of 74 percent, dropping to $999 million during the initial eight months of fiscal year 2023-24. Such a significant reduction reflects the success of policy interventions aimed at strengthening Pakistan’s fiscal position and reducing external vulnerabilities.
Furthermore, currency analysts emphasize the positive impact of recent inflows from remittances, export receipts, and anticipated funds from the International Monetary Fund (IMF). Weekly foreign exchange reserves, as of March 8, 2024, have surged to $13.151 billion, indicating growing confidence among investors and stakeholders in Pakistan’s economic prospects.
The nation’s economic resilience is further underscored 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. Such growth trajectories instill optimism for increased trade and economic activity, positioning Pakistan favorably on the global stage.
Overall, the strengthening of the Pakistani Rupee against the US Dollar reflects positive economic indicators and underscores Pakistan’s continued efforts towards sustainable growth and stability in its currency market.
