KARACHI, Pakistan — The Pakistani rupee recorded a notable appreciation of around 1.8 per cent against the US dollar during the July–December period, offering a brief sense of stability in an otherwise volatile economic landscape, according to currency market data.
The local currency closed the first half of the fiscal year at approximately Rs280 per dollar in the interbank market, compared to around Rs285 at the start of July. Analysts attribute this marginal recovery largely to a managed exchange rate regime, tighter controls in the currency market and improved sentiment driven by administrative measures rather than a fundamental economic turnaround.
Market observers note that the central bank’s active oversight helped curb sharp fluctuations, providing short-term relief to importers and exporters who had been struggling with persistent volatility. However, despite the recent gains, the rupee remains under pressure when compared to earlier levels, underscoring the fragile nature of the recovery.
Economists caution that the appreciation should not be interpreted as a long-term reversal of the rupee’s challenges. Structural issues such as trade imbalances, inflationary pressures, external debt obligations and limited foreign exchange inflows continue to weigh heavily on the currency. Experts warn that unless broader economic reforms are implemented, the rupee could once again face downward pressure in the coming months.
Currency analysts also point out that confidence in the rupee is closely tied to political and economic stability. Any disruption on these fronts could quickly reverse recent gains, especially as Pakistan navigates fiscal adjustments and external financing needs.
While the rupee’s performance in the first half of the fiscal year offers cautious optimism, economists stress that sustainable stability will depend on long-term policy consistency, stronger exports and improved foreign investment flows rather than short-term market management.
This story has been reported by PakTribune. All rights reserved.