KARACHI, October 29, 2026: The Pakistani rupee recorded a marginal improvement against the US dollar in the interbank market, closing at Rs276.77 on Wednesday, October 28. The local currency gained three paisa compared with the previous session’s closing rate of Rs276.80 per dollar, reflecting a slight strengthening in the exchange rate.
Currency dealers attributed the rupee’s modest improvement partly to dollar sales by exporters and remittances sent by overseas Pakistanis. These inflows helped support the local currency against demand for foreign exchange. However, the movement remained limited, indicating that the rupee’s overall position against the dollar had not changed significantly.
Pakistan’s external account position remains another important factor influencing the currency market. According to the State Bank of Pakistan, the country’s current account recorded a deficit of $874 million during the first quarter of fiscal year 2026–27. Export performance has improved, supported by rice, higher-value textile products and services exports, while workers’ remittances have remained resilient.
At the same time, imports have increased alongside economic activity, particularly non-energy imports. The State Bank expects the current account deficit for the full fiscal year to remain within its earlier projected range of zero to 1% of gross domestic product. Higher financial inflows could also help strengthen the country’s foreign exchange reserves.
A relatively stable exchange rate is important for businesses, importers and companies that make payments abroad. Changes in the dollar’s value can affect the cost of imported goods, industrial raw materials, machinery and foreign currency obligations. Nevertheless, the rupee’s future performance will depend on several factors, including foreign exchange demand and supply, export earnings, workers’ remittances, imports and external debt payments.
