Karachi, December 16, 2024 – The Pakistani rupee experienced a marginal decline of 5 paisas against the US dollar on Monday, closing at PKR 278.17 in the interbank foreign exchange market compared to Friday’s closing rate of PKR 278.12. Despite this minor dip, the rupee’s overall outlook remains stable, supported by positive economic indicators.
Currency analysts attributed the slight pressure on the rupee to a surge in dollar demand at the start of the week. However, inflows from export receipts and workers’ remittances helped cushion the impact, preventing any significant depreciation in the local currency’s value.
Market experts highlighted that the stability in the rupee’s performance is partly due to an improvement in Pakistan’s foreign exchange reserves. The State Bank of Pakistan (SBP) reported an increase of $13 million in reserves, which stood at $12.051 billion for the week ending December 6, 2024, up from $12.038 billion the previous week. This modest rise reflects growing confidence in the country’s currency market.
One of the key drivers behind the rupee’s resilience has been the substantial increase in remittances from overseas Pakistanis. During the first five months of the current fiscal year (July–November 2024-25), home remittances surged by 34% year-on-year, reaching $14.77 billion compared to $11.05 billion during the same period last year. This sharp growth highlights the pivotal role of remittances in strengthening Pakistan’s economy, as they provide essential foreign exchange inflows that stabilize the currency and alleviate external financial pressures.
Looking ahead, experts remain cautiously optimistic about the rupee’s short-term trajectory. Government measures to curb non-essential imports, combined with rising remittance flows, have eased pressure on the balance of payments, lending temporary stability to the rupee. However, analysts caution that sustainable currency stability will require comprehensive economic reforms. These reforms should focus on boosting industrial productivity, diversifying export markets, and reducing reliance on short-term external borrowing.
Experts also warned that as economic indicators improve, the demand for imported raw materials could increase, exerting renewed pressure on the rupee in the medium term. Structural adjustments will be critical to maintaining long-term stability in the currency market.