Despite escalating tensions with India, Pakistan’s currency market has remained remarkably stable, thanks to strong support from foreign exchange companies and prudent monetary measures.
According to Malik Bostan, Chairperson of the Exchange Companies Association of Pakistan (ECAP), exchange firms are currently injecting $25 million daily into the interbank market and have offered to supply up to $1 billion monthly if needed in an emergency. He highlighted that the rupee has shown resilience despite recent Indian airstrikes and the downing of 25 Indian drones by Pakistan.
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There is no visible panic or surge in dollar demand in the open market, and exchange companies report a calm financial environment. Bostan noted that once flight operations resume, a further increase in dollar inflows is expected.
Over the past two years, the State Bank of Pakistan has purchased $9 billion to stabilize the rupee, while exchange companies contributed $6 billion to the interbank market over the last year. Bostan also believes that with proper facilitation, monthly remittances could increase from $4 billion to $8 billion.
He claimed the real market value of the US dollar should be around Rs. 250 but is being kept artificially high due to pressure from the IMF and exporters. The government now plans to integrate exchange companies into the Pakistan Remittance Initiative (PRI) system to encourage more formal remittance inflows.
