Karachi, April 23, 2025 — The Pakistani rupee experienced a significant decline against the US dollar on Wednesday, trading near the 281 mark in the interbank market. This depreciation follows a recent forecast by Fitch Ratings, which projects a continued weakening of the rupee in the coming months.
At the close of trading on Wednesday, the rupee stood at approximately PKR 280.97 per US dollar, marking a 20-paisa drop from the previous day’s rate of PKR 280.77. This decline aligns with Fitch Ratings’ outlook, which anticipates the rupee to weaken to PKR 285 per dollar by June 2025 and further to PKR 295 by the end of fiscal year 2026. Profit by Pakistan Today
Fitch’s projection is based on the expectation that Pakistan’s central bank will allow a gradual depreciation of the rupee to manage external pressures as economic activity increases. The agency notes that while a weaker currency may drive up import costs, it could help narrow the trade deficit and support foreign exchange reserves.
The rupee’s decline is also influenced by domestic factors. There has been a rise in demand for dollars, driven by increased import payments and end-of-month corporate settlements. These factors have created temporary dollar shortages in the interbank market, exerting downward pressure on the rupee.
In addition to Fitch’s forecast, the International Monetary Fund (IMF) has revised Pakistan’s GDP growth projection downward to 2.6% for fiscal year 2025, citing economic challenges. The IMF’s report underscores the need for continued structural reforms to stabilize the economy.
Market analysts advise businesses and individuals engaged in foreign exchange transactions to closely monitor these developments. The anticipated depreciation of the rupee could impact import costs, remittance flows, and overall economic stability.
As the situation evolves, stakeholders are encouraged to stay informed and consider hedging strategies to mitigate potential risks associated with currency fluctuations.