Pakistani Rupee Gains Against USD as Economic Experts Forecast Further Decline Amid Positive Market Trends
The Pakistani Rupee (PKR) continued its upward momentum against the US Dollar in Thursday’s interbank session, gaining 10.99 paisa, or 0.04%, with the Dollar trading at Rs277.02 for buying and Rs278.80 for selling in the open market. This appreciation aligns with broader positive economic indicators, as the Pakistan Stock Exchange (PSX) also recorded significant gains, with the KSE-100 Index surpassing the 94,000-point mark.
The stock market rally, bolstered by investor confidence, saw the KSE-100 Index climb 547 points early in the session, peaking at 94,217 points with an impressive gain of 816 points at one point. By midday, the index stood at 94,154 points, a testament to the robust market sentiment as investors remained optimistic about Pakistan’s economic trajectory.
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Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha expressed optimism about the Rupee’s continued strength, citing a reduction in global commodity prices and a rise in foreign remittances as key factors. Paracha explained that the rising remittances—totaling over $30 billion in fiscal year 2024—are bolstering the Rupee, with exchange companies alone contributing $6 billion. He credited the efforts to the country’s military leadership and called for further reforms to strengthen the currency, suggesting that overseas Pakistanis and exchange companies should receive exporter status with a 30-35% rebate, similar to traditional exporters.
Paracha also emphasized the need for fiscal discipline, advocating for the reduction of government ministries and control of expenditures, which he argued could stabilize the economy further. He noted concerns over bureaucratic obstacles, claiming they deter investors and hinder Pakistan’s economic growth. Paracha urged the government to prioritize local investors and reduce bureaucratic interference.
Minister for Maritime Affairs, Qaiser Ahmed Sheikh, highlighted the economic potential of Pakistan’s ports, citing Central Asian and other foreign countries’ interest in using Karachi’s port facilities for trade. He revealed that both Russia and Malaysia have expressed interest in routing goods through Pakistan, with additional international investments likely.
Despite the Rupee’s recent gains, economist Abid Qaiyum Sulheri cautioned that the current rate of inflation remains a concern and warned that failure to meet IMF targets could adversely impact Pakistan’s economic stability.
