Karachi, April 8, 2025 – The Pakistani rupee lost 16 paisas against the US dollar on Tuesday, closing at PKR 280.73 in the interbank foreign exchange market compared to the previous day’s rate of PKR 280.57. This latest dip was primarily driven by a heightened demand for the greenback, largely fueled by payments for import and corporate needs.
Currency experts pointed out that the surge in import activity, particularly for industrial raw materials, is linked to a recent uptick in economic momentum. The government’s decision to significantly slash electricity tariffs is believed to have reinvigorated the industrial sector. With lower energy costs, factories are ramping up production, which in turn has led to increased import demand for essential inputs.
However, this rising demand for dollars to fulfill import requirements has put downward pressure on the rupee, which has remained under stress over the past few sessions. Market analysts also mentioned that the global market unease, triggered by former US President Donald Trump’s fresh tariff initiatives, further unsettled investors and currency traders. The uncertainty added another layer of pressure on the rupee as capital markets responded with volatility.
Despite the recent dip, analysts remain cautiously optimistic. They expect the rupee to find some stability in the days ahead, supported by upcoming remittance inflows and export proceeds. Additionally, Pakistan’s ongoing engagement with the International Monetary Fund (IMF) and the prospect of fresh financial inflows from the lender could help ease pressure on the rupee.
The current situation underscores the delicate balance between economic growth and external sector stability. While increased industrial activity is a positive sign, it also means higher import bills, which weigh on the rupee. Policymakers will need to navigate this phase carefully, ensuring that the gains from economic revival do not get offset by an unsustainable import burden.
In conclusion, the rupee’s depreciation reflects both domestic recovery efforts and international uncertainties. The coming weeks will be crucial in determining whether the rupee can regain ground or remain vulnerable to the pressures stemming from growing import needs.