Karachi, July 10, 2025 – The Pakistani rupee continued its downward trajectory against the US dollar on Thursday, marking the fifth consecutive session of decline in the interbank foreign exchange market.
The local currency depreciated by 9 paisas, closing at PKR 284.56 compared to the previous day’s rate of PKR 284.47.
The rupee has been on a steady losing streak since July 3, when it stood at PKR 283.86. This continued slide highlights the growing pressure from rising dollar demand, particularly amid a surge in import-related payments and increased activity by multinational corporations.
Currency dealers explained that the beginning of the new fiscal year 2025–26 has brought renewed urgency among importers. Many had delayed their purchases in June due to budget-related uncertainties, but they are now aggressively securing dollars, intensifying pressure on the rupee. Additionally, multinational firms are converting large sums into dollars to repatriate profits and dividends, adding further strain to the foreign exchange market.
Forex analysts suggest this trend is typical at the start of a new fiscal year. While the rupee’s depreciation is concerning, it is not entirely unexpected. The imbalance between dollar demand and availability is driving this short-term volatility.
Despite this, there are underlying positives. The State Bank of Pakistan (SBP) has reported that the country received a record $38.3 billion in workers’ remittances during FY 2024–25—up 26.6% from the previous year’s $30.3 billion. These strong inflows provide a cushion for Pakistan’s external account and could help stabilize the rupee in the medium term.
Furthermore, the Pakistan Bureau of Statistics (PBS) announced a 9.47% reduction in the trade deficit for June 2025, thanks to lower imports and exports. The SBP also confirmed that foreign exchange reserves rose to $14.51 billion at the end of June, reflecting improved external financing and fiscal discipline.
While the rupee may continue to face short-term fluctuations, experts believe that as dollar demand normalizes and the reserves remain strong, the currency is likely to regain some stability in the weeks ahead.