Pakistani rupee hits 17-month low against US dollar

The Pakistani rupee weakened to a 17-month low against the U.S. dollar in the interbank market, pressured by heightened demand from importers and companies repatriating dividends and profits ahead of the fiscal year-end.

The local currency has been under strain in recent months, with foreign exchange experts attributing the slide to a rise in imports and speculation about upcoming federal budget estimates, which reportedly include a projected exchange rate of PKR 290 per dollar.

Pakistan’s imports in April surged nearly 16% year-on-year to $5.6 billion, while cumulative imports for the first 10 months of FY25 rose 7.6% to $48.29 billion, according to official data.

On Friday, the dollar was trading around PKR 282. At the close of Thursday’s trading session, the rupee depreciated by 0.03% day-over-day to settle at PKR 282.06 against the greenback.

Since the beginning of January, the rupee has depreciated 1.25%, and by 1.32% since the start of the fiscal year in July.

A leading currency dealer said corporate demand for dollars to repatriate earnings added pressure on the rupee, noting that such demand typically increases in June as companies close their financial year.

According to the State Bank of Pakistan, repatriation of profits and dividends rose 115% year-on-year in April to $121.5 million. For the 10-month period ending April, repatriation surged 107% to $1.8 billion.