Karachi, February 14, 2025 – The Pakistani rupee recorded a modest gain against the US dollar on Friday, appreciating by 5 paisas in the interbank market.
The rupee concluded the trading day at PKR 279.21 per USD, improving slightly from the previous day’s closing of PKR 279.26.
According to currency market analysts, the marginal appreciation of the rupee was primarily driven by foreign inflows stemming from export receipts and remittances. Despite the ongoing pressure from import payments and a dip in foreign exchange reserves, these inflows helped stabilize the rupee and prevent a more significant decline.
The State Bank of Pakistan (SBP) recently reported a decline of $252 million in its foreign exchange reserves during the past week. As of February 7, 2025, the reserves stood at $11.166 billion, down from $11.418 billion on January 31, 2025. The central bank attributed this decline to external debt payments and other international financial obligations undertaken by the government.
Financial experts maintain cautious optimism about the rupee’s outlook, suggesting that continued growth in workers’ remittances could offer crucial support in the weeks ahead. The SBP highlighted a significant 32% rise in remittance inflows during the first seven months (July–January) of FY 2024-25, reinforcing foreign reserves and strengthening the rupee against the dollar.
In addition to remittances, robust export performance has also contributed to the rupee’s resilience. Data from the Pakistan Bureau of Statistics (PBS) indicates a 10% growth in exports during the same period, with figures reaching $19.55 billion compared to $17.78 billion in the corresponding months of the previous fiscal year. This upward trend in exports has helped reduce the trade deficit, consequently supporting the rupee.
Looking ahead, market analysts believe the rupee’s stability will hinge on sustained remittance inflows, consistent export growth, and careful management of foreign exchange reserves. While the rupee may face intermittent pressure from import-related dollar demand, these positive economic indicators suggest a promising outlook for the local currency in the near future.
The rupee’s resilience amid external financial challenges reflects the underlying strength of Pakistan’s economic fundamentals, with sustained foreign inflows providing the much-needed cushion against market volatility.