The Pakistani rupee is currently facing some pressure and is losing its value against US dollar. Experts say it will reach between 282.5 and 283 rupee per dollar. This isn’t a sudden crash, but rather a slow and steady decline.
Pakistan is importing excessive goods, and to pay for these, we need more US dollars. This increases the demand for dollars, making them more expensive. Additionally, with many people going on the Haj pilgrimage, they need to buy foreign currency for their trips, which also takes dollars out of the market. On the other hand, our businesses aren’t earning as many dollars from exports as they used to, meaning fewer dollars are coming into the country.
Other reasons include expanded government defense spreading, which need dollars, and the need to set an excess of payments after the Afghan border reopened. Even the central bank’s actions can play a role; at times it might purchase dollars to build up its reserves or allow certain financial agreements to end, putting heavy pressure on the rupee. We’re also aware of the continued effects of past affairs like US tariffs on goods, and delayed payments on export items. If we combine all these factors, this means there is insufficient US dollars available in the market, making it challenging for banks to finish transactions and pushing the rupee value down.
Considering all this, experts don’t believe there will be a sudden drop in rupee’s value. The government plans expect that by 2026, the one USD will be around 290 PKR. This is usual as the rupee weakened at a similar rate over time.
Interestingly, this weakening is happening, despite Pakistan has received a lot of funds from IMF. Our foreign exchange reserves have also raised, and for the first time in decades Pakistan is expected to have more money coming in than going out – this is known as current account surplus. So, while the rupee is facing some challenges now, there are also some hidden signs of boost in Pakistan’s economy.
