USD to PKR Exchange Rate Hits PKR 284.46 on July 12 2025

The USD to PKR exchange rate is a pivotal economic indicator for Pakistan, affecting everything from the cost of daily goods to national economic policies. As of July 12, 2025, the interbank exchange rate stands at approximately PKR 284.46 for one US Dollar. This figure is not just a number; it reflects the intricate interplay of global and domestic factors that significantly impact the daily lives of Pakistanis and the overall health of the nation’s economy.

This article provides a comprehensive overview of the USD to PKR rate, exploring the key drivers behind its fluctuations, its historical context, and the significant effects it has on imports, exports, and inflation in Pakistan.

The exchange rate between the US Dollar and the Pakistani Rupee is dynamic, changing daily based on activity in the foreign exchange market. The rate is primarily determined by supply and demand. The interbank rate, which is the rate at which banks trade currencies with each other, is around PKR 284.46 per US Dollar as of July 12, 2025. The open market rate, available to the general public through currency exchange companies, is slightly higher, approximately PKR 284.60 for buying and PKR 286.80 for selling. Minor daily fluctuations are normal, but significant trends in the USD to PKR rate are driven by deeper economic forces.

The value of the Pakistani Rupee against the US Dollar is influenced by several powerful economic factors. These include the current account balance, foreign exchange reserves, inflation rates, interest rates, foreign direct investment (FDI) and remittances, and political and economic stability. Pakistan has historically run a current account deficit, meaning it imports more than it exports, which increases the demand for US dollars and puts downward pressure on the rupee. Healthy foreign exchange reserves provide a buffer to manage the currency’s value, while low reserves weaken the ability to support the rupee, causing it to depreciate. Higher inflation rates in Pakistan compared to the US erode the purchasing power of the rupee, causing its value to fall relative to the dollar. The State Bank of Pakistan (SBP) sets the key policy rate, and higher interest rates can attract foreign investment, strengthening the rupee. Conversely, lower rates can have the opposite effect. Inflows of foreign investment and remittances are a major source of US dollars, supporting the rupee’s value. Uncertainty and instability can deter foreign investors and lead to capital flight, increasing demand for dollars and weakening the rupee.

The fluctuation of the USD to PKR rate has far-reaching consequences for the Pakistani economy. When the rupee depreciates, the cost of importing essential goods like fuel, edible oil, machinery, and raw materials rises, directly translating to higher costs for businesses and consumers. A weaker rupee makes Pakistani exports cheaper and more competitive in the international market, potentially boosting export volumes and helping earn more foreign currency. However, the increased cost of imported goods, especially fuel, leads to cost-push inflation, raising the prices of transportation, food, and utilities for everyone. Pakistan’s external debt, primarily denominated in US dollars, becomes more expensive to service when the rupee depreciates, increasing the value of this debt in rupee terms.

Historically, the Pakistani Rupee has seen significant depreciation against the US Dollar. In the early 2000s, the rate was below PKR 60 to a dollar. Over the past two decades, due to persistent economic challenges, including trade deficits and growing external debt, the rupee has steadily lost value, crossing the 100, 200, and now approaching the 300 mark.

The State Bank of Pakistan (SBP) is the central bank responsible for managing the country’s monetary policy and foreign exchange reserves. While Pakistan officially operates under a flexible, market-determined exchange rate system, the SBP can intervene in the market to smooth out excessive volatility. It does this by buying or selling US dollars from its reserves to influence the supply-demand dynamic.

A higher USD to PKR rate means the Pakistani Rupee has depreciated or weakened, making imports more expensive but potentially making Pakistani exports cheaper for foreign buyers. The US Dollar is the world’s primary reserve currency, and international trade, particularly for key commodities like oil, is conducted in US dollars. Therefore, Pakistan needs a stable supply of dollars to pay for its imports and service its foreign debt. Stabilizing the exchange rate requires long-term structural reforms, including increasing exports, attracting more foreign direct investment, boosting remittances through official channels, and managing the country’s trade deficit and fiscal policies effectively. The official interbank rate is published daily by the State Bank of Pakistan (SBP). Reputable financial news outlets and currency exchange websites also provide up-to-date open market and interbank rates.