Karachi, March 21, 2024 – The Pakistani Rupee maintained its stability against the US dollar, closing at PKR 278.40 in the interbank foreign exchange market on Thursday.
This slight gain of PKR 0.01 from the previous day’s close of PKR 278.41 underscores the resilience and adaptability of Pakistan’s economy amidst global economic fluctuations.
Currency market experts attribute the stability of the rupee to several key factors. Chief among them is the surge in remittances and export receipts, which has significantly contributed to Pakistan’s achievement of a current account surplus of $128 million in February 2024. This stark turnaround from the previous year’s deficit highlights the robustness of Pakistan’s economic policies.
Recent data released by the State Bank of Pakistan (SBP) further reinforces the positive trajectory of the nation’s economy. The Current Account Deficit (CAD) has seen a remarkable reduction of 74 percent, dropping to $999 million during the initial eight months of fiscal year 2023-24. This reduction reflects the effectiveness of policy interventions aimed at strengthening Pakistan’s fiscal health.
Finance Minister Muhammad Aurangzeb acknowledges the crucial role of China in supporting Pakistan’s economic stability. Rollover of safe deposits by China has bolstered Pakistan’s foreign exchange reserves, contributing to the stability of the rupee. The Finance Minister expresses gratitude towards the Chinese leadership for their steadfast support, emphasizing the significance of SAFE deposits and refinancing of commercial loans.
Currency analysts highlight the positive impact of recent inflows from remittances, export receipts, and anticipated funds from the International Monetary Fund (IMF). Weekly foreign exchange reserves have surged to $13.151 billion as of March 8, 2024, signaling confidence among investors and stakeholders.
Pakistan’s economic resilience is further evidenced by notable growth in workers’ remittances and exports. February 2024 saw 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. This growth trajectory augurs well for Pakistan’s economic outlook, fostering optimism for increased trade and economic activity.
As Pakistan continues to navigate economic challenges, the stability of the rupee against the dollar reflects concerted efforts towards sustainable growth and stability. With prudent fiscal policies and strategic partnerships, Pakistan aims to solidify its position as a resilient and dynamic player in the global economic arena.
In conclusion, the Pakistani Rupee’s steadfastness against the dollar serves as a testament to the nation’s economic resilience and prudent policy measures. As Pakistan harnesses emerging opportunities and addresses economic challenges, it remains poised for sustained growth and stability in the years ahead.
