Fitch Ratings has projected that the Pakistani rupee will gradually depreciate in the coming months as economic activity strengthens, potentially exerting additional pressure on the current account.

According to a Bloomberg report, Fitch anticipated the rupee would decline to Rs285 against the US dollar by June 2025 and further to Rs295 by the end of the next fiscal year in June 2026.

This forecast showed that a 1.5% depreciation from the current inter-bank rate of Rs280.76 and a total decline of 5% over the next 14 months.

Fitch’s analysis suggested that the State Bank of Pakistan will permit the rupee to weaken gradually to alleviate current account pressures as the economy gains momentum.

This outlook follows Pakistan’s achievement of a record $1.2 billion current account surplus in March 2025, a significant turnaround from a $97 million deficit in February.

Data from the State Bank of Pakistan reveals that the rupee has depreciated by 0.86%, or Rs2.43, during the first eight months of FY24-25.

The local currency was trading at Rs280.77 on Tuesday, down from Rs278.34 on June 28, 2024.

The rupee previously fell to a historic low of Rs307.10 per dollar in September 2023 due to rampant dollar smuggling.

However, a government crackdown on illegal currency trading facilitated a recovery to approximately Rs277 in early 2024.

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