Karachi
The Pakistani Rupee bounce back and strengthened against the US dollar reaching Rs278.08 on Tuesday (March 26) at the closing of the interbank foreign exchange market.
The upward movement reflects positive economic momentum. This uptick is largely driven by a surge in remittances and export receipts, contributing to a current account surplus, said the currency market analysts.
Increasing foreign exchange reserves and investor confidence indicate a positive outlook for Pakistan’s economy. Anticipated funds from international institutions such as the IMF further bolster this confidence.
One primary factor contributing to the rupee’s appreciation is the surge in remittances and export receipts, according to currency market experts. Pakistan’s current account surplus of $128 million in February 2024 is a testament to the substantial contributions of remittances and exports to the nation’s fiscal health.
Notable policy interventions have led to a 74 percent reduction in the Current Account Deficit (CAD), showcasing improved fiscal stability. These interventions highlight effective economic management and a commitment to reducing external vulnerabilities.
The Rupee’s appreciation signifies the collective impact of sound economic policies, buoyant remittances, and robust export performance. It underscores Pakistan’s dedication to fostering sustainable growth and stability in its currency market.