By Moaaz Manzoor
The Pakistani rupee has continued to make steady progress against major global currencies. This is due to strong remittance inflows and a steady rise in foreign exchange reserves. While the global market is fluctuating, the local currency remains stable.
Pakistani Rupee Stability Amid Global Market Volatility
According to the State Bank of Pakistan (SBP), from October 6 to October 10, 2025, the rupee showed only slight movement against the US dollar.
The dollar started the week at a buying rate of 281.04 and a selling rate of 281.47, but these values barely changed over the course of the week.
On October 7, the dollar dropped slightly to 280.98 (buying) and 281.41 (selling), before making small adjustments on the following days. By the end of the week, the rupee closed at 280.96 (buying) and 281.39 (selling).
The Chinese yuan also followed a similar trend, starting at 39.45 and 39.51, and ending at 39.43 and 39.48 by October 10. The Saudi riyal stayed stable as well, moving from 74.94–75.05 at the beginning of the week to 74.91–75.02 at the end.
Pakistani Rupee’s Movement Against the US Dollar
Among European currencies, the euro experienced the sharpest drop. It started the week at 329.16–329.66 and fell to 325.07–325.57 by October 10.
The British pound followed the same pattern, weakening from 377.86–378.48 to 373.81–374.39. The Japanese yen showed only mild fluctuations, dropping from 1.87–1.87 to 1.84–1.84.
According to Arif Habib Limited (AHL), the rupee gained 0.03% against the dollar week-on-week, closing at 281.17 per USD.
AHL attributed this slight increase to stronger remittance inflows and an improvement in Pakistan’s external account stability.
The Role of Remittance Inflows in Strengthening the Rupee
In September 2025, workers’ remittances reached USD 3.18 billion, an 11% increase from the same month last year.
On a monthly basis, remittances rose by 1.45%. In total, during the first quarter of the fiscal year, remittances increased by 8% year-on-year, reaching USD 9.6 billion.
Pakistan’s foreign exchange reserves rose to USD 19.81 billion, up by USD 13.7 million from the previous week. The SBP’s reserves were reported at USD 14.42 billion, increasing by USD 20 million. Commercial banks held USD 5.39 billion in reserves.
Pakistan’s Foreign Exchange Reserves and Their Impact
Despite ongoing external debt repayments, analysts at EK Global Capital noted that Pakistan’s reserves remain strong, showing steady inflows and effective management of foreign exchange.
Experts believe that the rupee’s stability signals growing confidence in Pakistan’s external financial health, supported by strong remittances and a disciplined monetary policy.
Experts Highlight Confidence in Pakistani Rupee Stability
The stability of the rupee is a clear indicator of improving external financial conditions and robust economic management.
With strong remittance flows and consistent foreign exchange reserves, experts are confident that Pakistan’s currency will continue to show resilience against global market volatility.
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