The exchange rate of the Pakistan Rupee (PKR) is an important indicator of the country’s monetary health, influencing the whole thing from import rates to inflation rates. As of February 21, 2025, the PKR has experienced amazing fluctuations in opposition to principal international currencies.
Current Exchange Rates
As in line with the contemporary information from the State Bank of Pakistan (SBP) and different respectable monetary assets, the exchange rates for PKR in opposition to principal currencies are as follows:
US Dollar (USD): The PKR is buying and selling at about 279.85 in line with USD.
Euro (EUR): The exchange rate stands at around 291.86 PKR in line with EUR.
British Pound (GBP): The PKR is worth approximately 352.37 in line with GBP.
Indian Rupee (INR): The exchange rate is about 3.1932 PKR in line with INR.
Saudi Riyal (SAR): The PKR is buying and selling at round 74.62 in line with SAR.
UAE Dirham (AED): The exchange rate stands at about 76.72 PKR in line with AED.
These rates are issue to exchange because of marketplace dynamics and are prompted with the aid of using diverse monetary elements.
Historical Trends
Understanding the historic overall performance of the PKR presents context to its modern-day valuation. Over the past year, the PKR has confronted durations of depreciation and appreciation prompted with the aid of using each home and global occasions.
Against US Dollar
In early 2024, the PKR began buying and selling at about 278.43 in line with USD. Throughout the year, it experienced fluctuations, achieving an excess of around 283.32 in February 2025.
Against the Euro
The PKR’s exchange rate in opposition to the Euro has additional visible variations. In October 2024, the Euro was offered at Rs302.01 and purchased at Rs 301.47.
Against the Indian Rupee
The PKR-INR exchange rate has remained distinctly strong, with minor fluctuations. In February 2025, the rate became about 3.1932 PKR in line with INR.
Factors Influencing the PKR Exchange Rate
Several elements make contributions to the fluctuations in the PKR’s exchange rate:
Economic Indicators
Inflation Rates: High inflation in Pakistan can erode the shopping energy of the PKR, leading to depreciation.
Interest Rates: The SBP’s economic coverage, in particular modifications in exchange rates, can appeal to or deter overseas investment, influencing the PKR’s value.
Political Stability
Political occasions, which include elections or coverage modifications, can affect investor confidence, mainly to capital inflows or outflows that have an effect on the exchange rate.
exchange Balance
A deficit in the exchange stability, wherein imports exceed exports, can cause growth for overseas currencies, leading to PKR depreciation.
International Monetary Fund (IMF) Agreements
Negotiations and agreements with the IMF, together with bailout packages, frequently include situations that impact Pakistan’s monetary regulations and, subsequently, the PKR’s value.
Recent Developments
In recent months, the Pakistan Rupee has confronted depreciation because of easing import regulations, which elevated calls for overseas currencies. In August 2023, the PKR fell to a low in the interbank marketplace, buying and selling at 299 in opposition to the USD.
Additionally, in November 2024, the PKR declined in a declining fashion in opposition to the USD before IMF negotiations, with the dollars appreciating over numerous sessions.
Impact of Exchange Rate Fluctuations on Various Sectors
1. Importers and Exporters
A weaker PKR makes imports (e.g., machinery, fuel, and client items) greater expensive, probably leading to better inflation.
On the other hand, Pakistani exporters can also additionally gain as their items turn out to be greater low cost in global markets.
2. Overseas Pakistanis and Remittances
A depreciating rupee usually blesses remote places Pakistanis who ship remittances back home, as they get a better exchange rate for his or her overseas earnings.
However, common fluctuations in exchange rates can also additionally create uncertainty for households counting on remittances for day by day expenses.
3. Local Businesses and Consumers
Businesses that rely upon imported uncooked substances can also additionally face growing rates, mainly to better expenses for client items.
Inflationary pressures because of a vulnerable rupee can affect the shopping energy of the overall population, affecting family budgets.
Comparison with Other Currencies in the Region
The PKR’s overall performance may be in comparison to different South Asian currencies, which include the Indian Rupee (INR) and Bangladeshi Taka (BDT).
The Indian Rupee (INR) has proven distinctly strong overall performance in evaluation, sponsored with the aid of using a more potent financial system and sturdy forex reserves.
The Bangladeshi Taka (BDT) has additionally depreciated however at a slower rate than the PKR, because of higher exchange stability management.
This evaluation highlights the want for Pakistan to put in force more potent monetary reforms to stabilize its foreign money and improve investor confidence.
How to Stay Updated on PKR Exchange Rates
For people and corporations wanting real-time exchange rate updates, the subsequent assets are recommended:
State Bank of Pakistan (SBP) (www.sbp.org.pk)
the Forex market Trading Platforms (which include XE, OANDA, and Investing.com)
Financial News Websites (which include Bloomberg, Reuters, and The Express Tribune)
Local Banks and Exchange Companies
Final Thoughts
The exchange rate of the Pakistani Rupee is prompted with the aid of using a couple of home and international elements. While depreciation poses demanding situations for imports and inflation, it may additionally offer benefits to exporters and remote places Pakistanis sending remittances. To make certain long-time period stability, Pakistan desires recognition of sustainable monetary growth, powerful economic regulations, and boosting investor confidence.
FAQs
Why is the Pakistani Rupee depreciating?
Pakistan Rupee: The PKR’s depreciation may be attributed to numerous elements, together with a widening exchange deficit, political instability, inflation, and outside debt obligations. Easing import regulations and elevated call for overseas currencies have additionally contributed to the decline.
How does the exchange rate have an effect on the common citizen in Pakistan?
Pakistan Rupee: A weaker PKR makes imports greater expensive, mainly to better expenses for items which include fuel, food, and uncooked substances. This can bring about elevated inflation, lowering the shopping energy of consumers.
What measures are the authorities taking to stabilize the PKR?
Pakistan Rupee: The authorities and the SBP have applied diverse measures, together with economic tightening with the aid of elevating exchange rates, negotiating monetary help from global agencies just like the IMF, and enforcing regulations to enhance exports and decrease imports.
How do international occasions affect the PKR exchange rate?
Pakistan Rupee: Global occasions, which include modifications in oil expenses, geopolitical tensions, and global monetary regulations, can impact investor sentiment and capital flows, thereby affecting the PKR’s value.
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