Karachi, December 9, 2024 – The Pakistani rupee witnessed a modest recovery on Monday, appreciating by 3 paisas to close at PKR 277.98 against the US dollar in the interbank foreign exchange market. This follows its previous closing of PKR 278.01 on Friday.
Currency experts attributed this slight recovery to increased dollar inflows into the banking system and a reduction in demand for import payments. These factors provided temporary relief to the rupee, which has been under persistent pressure in recent months.
A significant boost to the rupee’s stability came from a rise in Pakistan’s foreign exchange reserves, which climbed to $16.62 billion as of November 29, 2024. This marks a weekly increase of $544 million, driven largely by a $500 million inflow from the Asian Development Bank (ADB). The State Bank of Pakistan’s (SBP) reserves rose by $619 million during the week, reaching $12.038 billion compared to $11.419 billion recorded on November 22, 2024.
Currency analysts are cautiously optimistic about the rupee’s trajectory, highlighting several supportive factors. Growing remittance inflows continue to inject vital foreign exchange into the economy. Meanwhile, government measures aimed at curbing non-essential imports have helped stabilize the balance of payments. These combined efforts are expected to underpin the rupee’s stability in the near term.
Despite these positive developments, experts emphasized the need for structural reforms to sustain economic stability in the long run. Key recommendations include enhancing industrial productivity, diversifying exports, and reducing reliance on short-term external debt. Strengthening these areas is seen as essential to fortifying Pakistan’s economic base and improving its global competitiveness.
Moreover, sustainable fiscal policies and export-oriented growth strategies remain critical. Addressing systemic challenges such as fiscal deficits, industrial bottlenecks, and governance inefficiencies will be pivotal in shielding the economy from future volatility. A comprehensive reform agenda, experts argue, is vital to building economic resilience and ensuring long-term growth.
As the rupee shows signs of stability, policymakers face the critical task of implementing reforms to secure lasting economic recovery.