The Pakistani rupee has ended fiscal year 2025-26 with significant gains against the world’s top three currencies. The Pakistani rupee appreciated FY26 by reversing the losses recorded in the previous fiscal year. This recovery reflects improving economic conditions and stronger foreign exchange reserves.
The local currency closed FY26 at Rs. 278.1614 per US dollar. This compares with Rs. 283.95 at the start of FY25. Therefore, the rupee gained 2.04 percent or Rs. 5.79 against the greenback over the course of the year. The recovery reversed the heavy losses seen in FY25.
PKR had closed FY25 at Rs. 283.76 against the US dollar. This represented a 1.95 percent or Rs. 5.42 depreciation from Rs. 278.34 recorded on June 28 to end FY24. So the prior year had seen substantial weakness.
During FY26, the rupee initially came under pressure and hit its weakest level. On July 23, 2025, the currency reached Rs. 285.224 per dollar. However, the Pakistani rupee appreciated FY26 over the following months. From that low point to the FY26 close, the rupee gained Rs. 7.06. This represents approximately 2.48 percent appreciation against the dollar.
The currency remained stable after December 2025 as Pakistan’s economy started recovering. Healthy remittance inflows supported this stabilization. Additionally, stronger foreign exchange reserves contributed to the rupee’s strength. Therefore, multiple factors worked together to strengthen the currency.
By the close of FY26, the dollar had fallen below the Rs. 279 level in the interbank market. This marked the rupee’s strongest year-end position since FY24. So the currency recovered to pre-crisis levels relatively quickly.
British Pound
The Pakistani rupee posted a strong recovery against the British pound during FY26. The PKR strengthened from Rs. 389.1876 per GBP on July 2, 2025. Moreover, it improved to Rs. 368.0214 per GBP at the close of the fiscal year. Therefore, the rupee gained Rs. 21.1662 or approximately 5.44 percent against sterling.
This performance against the pound exceeded gains against the dollar. So the rupee showed particular strength relative to major developed-market currencies.
Euro
The rupee likewise appreciated against the euro over the course of FY26. The PKR improved from Rs. 334.4696 per EUR on July 2, 2025. Additionally, it strengthened to Rs. 316.9231 per EUR at the fiscal year-end. Therefore, the currency recovered Rs. 17.5465 or approximately 5.25 percent against the euro.
Like the pound, the rupee’s appreciation against the euro exceeded its dollar gains. So Pakistan’s currency demonstrated broad-based strength across major global currencies.
The simultaneous appreciation against multiple currencies suggests fundamental economic improvements rather than temporary fluctuations. Remittances from overseas Pakistanis have increased significantly. Moreover, foreign exchange reserves have grown substantially. Therefore, the rupee’s strength reflects real economic progress.
Economic stabilization has reduced uncertainty among investors and traders. When confidence improves, foreign currency inflows increase naturally. Additionally, reduced pressure on reserves allows central bank support for the rupee. Finally, improved economic fundamentals should sustain currency strength into the next fiscal year.
