Pakistani rupee is expected to strengthen further against the US dollar and may fall below the Rs. 250 mark, according to Malik Bostan, Chairman of the Exchange Companies Association of Pakistan (ECAP). He pointed to improving foreign exchange inflows and growing defense exports as key drivers of the trend. Bostan said the rupee has already recovered significantly, gaining nearly Rs. 30 from its historic low of around Rs. 340 per dollar.
He added that the dollar’s value has declined from above Rs. 290 to nearly Rs. 281 over the past six months, rejecting claims that the currency’s stability is short-lived. “The real value of the dollar against the rupee is below Rs. 250,” Bostan said, citing underlying economic indicators rather than speculative pressures. He attributed the strengthening outlook to a sharp increase in defense exports, particularly international interest in Pakistan’s JF-17 Thunder fighter jet.
According to Bostan, at least 15 countries are currently exploring the purchase of the aircraft, which could generate substantial foreign exchange inflows. Bostan also highlighted a strong rebound in the stock market, which has climbed from roughly 46,000 points to nearly 185,000 points, calling it a reflection of renewed investor confidence and macroeconomic stabilization.
Pakistan’s foreign exchange reserves have risen sharply from less than $3 billion in 2022 to approximately $22 billion at present, providing further support to the rupee and easing external payment pressures. Responding to government’s economic management, Bostan said the economic recovery would naturally take time. He recalled widespread fears not long ago that the dollar could rise to Rs. 500, noting that expectations have now shifted decisively toward a much stronger rupee.
While acknowledging a decline in exports, he blamed the downturn on climate change-driven floods over the past three years, which severely damaged crops and disrupted agricultural output. He expressed confidence that exports would recover as conditions stabilize. Bostan also pointed to rising overseas employment as a key positive indicator. More than 700,000 Pakistanis went abroad last year, including skilled professionals such as doctors, engineers, electricians, and accountants. He said their contributions could lift remittances from $35 billion to around $45 billion in the coming year.
Higher remittances, he added, would further bolster foreign exchange reserves, strengthen the rupee, support the stock market, and reinforce overall economic stability.