PKR Strengthens as Remittances Rise
The Pakistani rupee extended its gains against the US dollar in the inter-bank market last week, appreciating by Re0.25, or 0.09 percent.
According to figures from the State Bank of Pakistan (SBP), the local currency closed at 282.47 on Friday, compared to 282.72 a week earlier. Inflows from overseas workers continued to support the currency, with remittances standing at $3.2 billion in July 2025.
This marked a 7.4 percent increase compared to $3 billion recorded in the same month last year, though inflows fell 6 percent from $3.4 billion in June.
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SBP data also showed that foreign exchange reserves declined by $72 million during the week, bringing total holdings to $14.2 billion as of 1 August. Overall liquid reserves stood at $19.50 billion, including $5.3 billion with commercial banks.
On the fiscal side, the Ministry of Finance reported a budget deficit of Rs6.17 trillion for the fiscal year 2024-25, equivalent to 5.4 percent of GDP — the lowest level in nine years.
Federal and provincial revenue for the year stood at Rs17.997 trillion, or 15.7 percent of GDP, against total spending of Rs24.165 trillion, or 21.1 percent of GDP.
In the open market, the rupee gained 76 paise for buying and 40 paise for selling against the dollar, ending at 283.86 and 284.90 respectively. The currency also strengthened against the UAE dirham and Saudi riyal but weakened against the euro.
