Karachi, July 4, 2025 – The Pakistani rupee witnessed a slight depreciation on Friday, losing 11 paisas against the US dollar to close at PKR 283.97 in the interbank foreign exchange market.
This compares to the previous day’s closing of PKR 283.86, marking a modest but notable dip in the local currency.
Currency dealers and analysts have attributed the weakening of the rupee to renewed pressure from corporate and import demand for the dollar. With the start of the new fiscal year, importers have resumed placing fresh international orders, increasing the need for dollar liquidity in the interbank market. The rupee struggled to maintain stability as corporates rushed to settle payments for imports and operational obligations.
According to experts, many importers had previously held back their purchases during the month of June, awaiting clarity from the federal budget. Now that the budgetary measures are in place, demand for the dollar has surged, pushing the rupee downward. Additionally, multinational companies are actively purchasing dollars from local markets to repatriate profits and dividends to their parent entities abroad, further pressuring the interbank supply of foreign currency.
Despite the slight depreciation of the rupee, there are signs of underlying strength in the broader macroeconomic indicators. The Pakistan Bureau of Statistics (PBS) released trade data for June 2025, showing a 9.47% contraction in the trade deficit compared to May. This decline came on the back of a 4.79% dip in exports and a 7.08% fall in imports—reflecting sluggish activity but potentially improved trade balance dynamics.
In a more encouraging development, the State Bank of Pakistan (SBP) reported a substantial increase in its foreign exchange reserves. By the end of the fiscal year 2024–25, the central bank’s reserves had surged to $14.51 billion, up from $9.39 billion a year earlier. This remarkable $5.12 billion boost is attributed to improved economic policies, a favorable external environment, and successful debt rollovers.
While the rupee faces short-term volatility in the interbank market due to seasonal payment pressures, the enhanced reserve position is expected to provide greater stability to the rupee-dollar exchange rate in the coming weeks.