Islamabad, 18 July – Pakistan’s currency market is facing a troubling dollar shortage, despite record remittance inflows and a current account surplus. Banks are reportedly selling dollars at rates significantly higher than the State Bank of Pakistan’s (SBP) official figures, creating difficulties for importers and the general public.
Currency dealers say even small dollar requirements—such as $15,000 needed to open a letter of credit—are becoming hard to fulfill. This shortage is particularly puzzling to market experts, considering the fiscal year 2024-25 has closed and the SBP has completed all scheduled payments.
Banks are charging a premium of Rs2 to Rs2.5 above the official SBP rate of Rs285.16, pushing the effective rate for importers to Rs287–288 per dollar. The open market rate, as reported by the Exchange Companies Association of Pakistan (ECAP), reached Rs288.60 on Thursday—Rs10 higher than the previous year’s rate of Rs278.
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Adding to concerns, neither bankers nor exchange company officials are willing to publicly comment on the situation, reportedly due to fears of regulatory repercussions.
Despite selling nearly $5 billion to banks in FY25, exchange companies are still grappling with tight dollar availability. This shortage is also impacting students, travellers, and patients seeking medical treatment abroad, who are facing difficulty accessing foreign currency.
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Currently, Pakistan’s total foreign reserves stand close to $20 billion, with commercial banks holding $5.431 billion. However, the ongoing dollar crunch continues to disrupt market stability and erode confidence.
