Karachi, July 3, 2025 – The Pakistani rupee registered a modest yet encouraging gain against the US dollar on Thursday, driven by a substantial increase in the country’s foreign exchange (forex) reserves.
The local currency appreciated by 9 paisas, closing at PKR 283.86 in the interbank market, compared to the previous day’s closing of PKR 283.95.
Market analysts link the rupee’s appreciation directly to the latest announcement by the State Bank of Pakistan (SBP), which reported a significant boost in its forex reserves. The central bank revealed that its forex reserves had climbed to $14.51 billion by the end of the fiscal year 2024–25, marking a considerable improvement from $9.39 billion recorded at the close of the previous fiscal year.
This $5.12 billion increase in forex reserves reflects strong macroeconomic performance, successful policy implementation, and a favorable external environment. It also places Pakistan in a more secure financial position ahead of any future review by the International Monetary Fund (IMF), boosting investor sentiment and currency market stability.
According to the SBP, the surge in forex reserves was achieved through a combination of improved current account management, higher inflows from remittances, increased export earnings, and rising foreign direct investment. These gains were further supported by consistent implementation of the IMF-backed reform agenda, which emphasized fiscal responsibility and external sector stability.
Economists point out that rising forex reserves play a critical role in strengthening the rupee. With a stronger reserves buffer, Pakistan is better positioned to meet its international obligations, finance imports, and cushion the economy from external shocks. This builds market confidence and helps stabilize the rupee in the foreign exchange market.
The central bank added that its reserves had grown steadily throughout the year, reinforcing its ability to manage currency volatility. Going forward, the rupee is expected to remain stable, provided the country maintains its reform momentum and continues to attract forex inflows.
The latest rupee recovery, underpinned by rising forex reserves, signals renewed strength in Pakistan’s external sector and sets a more optimistic tone for economic stability in the months ahead.