Karachi, June 17, 2025 – The Pakistani rupee extended its downward trajectory for the sixth consecutive trading session on Tuesday, weakening further against the dollar in the interbank foreign exchange market.
According to market data, the local currency depreciated by 24 paisas to close at PKR 283.17 per dollar, marking a steady decline since June 10, 2025.
Currency experts cited end-of-quarter payment obligations and a rise in import-related dollar demand as primary reasons behind the ongoing pressure on the rupee. As businesses and corporations scramble to settle international dues, the demand for dollar liquidity in the interbank market has surged, contributing to the local currency’s slide.
The situation is further aggravated by growing geopolitical instability. The escalating tensions between Israel and Iran have created volatility in global commodity markets, particularly crude oil. The spike in oil prices has led to concerns over a ballooning import bill for Pakistan, where petroleum products make up a significant share of imports. As the dollar value of oil imports climbs, the strain on the rupee intensifies.
Despite these challenges, there have been notable positives in the external sector. According to the State Bank of Pakistan (SBP), workers’ remittances surged to $34.9 billion during the first 11 months (July–May) of FY25, reflecting a robust 28.8% year-on-year increase. In May alone, Pakistan received $3.7 billion in remittances, providing much-needed dollar inflows to support the rupee in the interbank market.
Additionally, the SBP reported a $277 million increase in the country’s total foreign exchange reserves for the week ending June 6. Total reserves now stand at $16.875 billion, with the SBP holding $11.676 billion. This strengthening reserve position gives the central bank more room to manage exchange rate fluctuations and stabilize rupee supply in the interbank system.
Nevertheless, the outlook for the rupee remains cautious. Ongoing geopolitical turmoil and fluctuating global oil prices continue to pose risks to the exchange rate. Analysts suggest that while current account improvements and healthy reserve levels offer some buffer, further movement in the dollar-rupee parity will depend on both global events and domestic fiscal discipline.