Pakistani Rupee Expected to Remain Strong Against US Dollar in FY26
The Pakistani Rupee (PKR) is expected to remain stable and may strengthen against the US dollar during fiscal year 2026, supported by improving economic indicators and a healthier external financial position, according to a recent market outlook by AKD Research.
The report highlights that lower international oil prices, a reduced import bill, and increasing foreign exchange reserves have helped improve Pakistan’s external account position in recent months.
In addition, strong remittance inflows from overseas Pakistanis and continued fiscal reforms are contributing to greater economic stability and investor confidence.
Analysts believe that easing inflationary pressures and positive real interest rates could further support the local currency. These factors may also encourage investment inflows and strengthen Pakistan’s financial markets.
AKD Research expects the State Bank of Pakistan (SBP) to maintain a cautious monetary policy stance while closely monitoring domestic and global economic conditions.
The report notes that declining energy costs and an improving balance of payments outlook are likely to provide additional support to the rupee during FY26.
With foreign exchange reserves showing gradual improvement and external financing risks easing, the overall outlook for the Pakistani currency remains positive. Market experts believe these trends could help the rupee maintain stability and potentially gain value against the US dollar over the coming fiscal year.
