Islamabad, Apr 23, 2025: The State Bank of Pakistan (SBP) is expected to allow the Pakistani rupee to gradually depreciate in order to ease the pressure on the nation’s current account, as the economy begins its recovery, according to Fitch Ratings, a leading credit rating agency.
The Fitch anticipates the rupee will reach 285 against the US dollar by June’s end, with a further decline to 295 by the close of fiscal year 2026.
Krisjanis Krustins, Director for Asia Pacific Sovereign Ratings at Fitch, presented this outlook.
So far this year, the rupee has weakened by approximately 0.7 percent, making it one of the region’s more vulnerable currencies, as per Bloomberg data.
The SBP has yet to respond to this forecast.
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“We believe the SBP is understandably concerned about this situation,” Krustins remarked during a Fitch webinar on Tuesday.
“While they are addressing it by maintaining higher interest rates for an extended period, we expect them to also manage the situation by permitting gradual currency depreciation,” he explained.
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