Karachi, August 13, 2025 – The Pakistani rupee posted a measured recovery in Wednesday’s interbank market, appreciating by 20 paisas against the US dollar after the State Bank of Pakistan (SBP) announced significant policy relaxations for exporters. The local currency closed at PKR 282.22, compared to PKR 282.42 in the previous session, marking a notable shift in sentiment for the currency market.
Currency analysts attributed the improvement largely to the SBP’s decision to waive the lien requirement on exporters under the “Delayed Realization of Export Proceeds” framework. The rule, introduced last year, had been seen as a liquidity constraint for businesses awaiting delayed foreign payments. Its removal is now being interpreted as a supportive measure to facilitate trade and ease financial pressure on exporters.
The policy change came through the revocation of FE Circular No. 02 dated March 31, 2023, which had inserted Para 33A into Chapter 12 of the Foreign Exchange Manual. These earlier provisions effectively restricted exporters by tying up delayed proceeds, reducing their ability to reinvest or meet operational needs. The SBP’s latest move not only releases these funds but also signals a broader intent to enhance export competitiveness and improve overall market liquidity.
In parallel, the central bank has revised certain anti-money laundering guidelines for foreign trade transactions to counter the risk of illicit dollar outflows. This dual approach — easing export restrictions while tightening oversight on suspicious transactions — reflects a balanced policy stance aimed at strengthening legitimate capital flows while maintaining regulatory safeguards.
Market sentiment received an additional boost from encouraging macroeconomic data. Pakistan recorded over $3 billion in foreign inflows during July 2025, supported by $3.21 billion in workers’ remittances — a 7.4% increase from $3 billion in July 2024. This steady growth in remittances continues to play a crucial role in supporting the current account and stabilizing the currency.
However, challenges on the trade front remain visible. According to data from the Pakistan Bureau of Statistics (PBS), imports in July 2025 surged to $5.45 billion, up 29.25% compared to the same month last year and 12.37% higher than in June 2025. While exports also showed improvement — rising 17% year-on-year to $2.70 billion and 9% on a month-on-month basis — the widening import bill still poses risks to the trade balance.
Economic observers suggest that sustaining the rupee’s current stability will require a combination of factors: consistent export growth, continued remittance inflows, and vigilant monitoring of dollar movements to prevent speculative pressures. The SBP’s latest policy adjustments may provide immediate relief to exporters, but long-term currency stability will depend on structural trade improvements and disciplined fiscal management.