Karachi, September 1, 2025 – The Pakistani rupee showed marginal improvement on Monday, closing at PKR 281.75 against the US dollar in the interbank foreign exchange market.
The modest appreciation of two paisas came after last Friday’s close of PKR 281.77, continuing a trend of minor yet steady gains in recent sessions.
Financial analysts attribute this resilience of the rupee to a combination of factors, including stronger macroeconomic fundamentals, a steady rise in worker remittances, and higher export proceeds. Additionally, the State Bank of Pakistan (SBP) has been actively ensuring market stability through prudent interventions and maintaining healthy levels of foreign exchange reserves.
According to SBP data, Pakistan’s total reserves increased by $47 million, reaching $19.618 billion for the week ending August 22, 2025. Of this, the central bank’s reserves rose by $18 million to $14.274 billion, while commercial banks’ holdings climbed by $27 million to $5.344 billion. This uptick in reserves has provided a buffer for external debt repayments and enhanced market confidence.
Experts believe the rupee could gain further strength in the coming weeks if additional inflows from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) materialize. Such inflows would not only bolster reserves but also reinforce exchange rate stability amid ongoing global currency fluctuations.
With the dollar moving within a narrow trading range and the rupee maintaining its upward bias, currency market sentiment remains cautiously optimistic as September begins.