The State Bank of Pakistan (SBP) has released the latest mark-to-market (M2M) currency rates for major international currencies against the Pakistani Rupee (PKR) as of January 08, 2026.
These official rates, critical for authorized currency dealers to revalue their portfolios daily, are calculated using the weighted average of interbank closing rates for the US Dollar from brokerage houses, with other currency valuations derived from USD/PKR data combined with their respective USD exchange rates on LSEG Workspace.
US Dollar Shows Marginal Appreciation in New Year Trading
The US Dollar (USD) demonstrated slight strengthening in early 2026 trading, valued at 279.0634 PKR in the spot market, with forward contracts extending to 291.3975 PKR for one-year tenors. This represents a modest uptick from the year-end closing rate of 278.5887 PKR, reflecting post-holiday market adjustments and renewed dollar demand in the opening week of the new year.
The forward premium of approximately 12.3 PKR suggests market participants anticipate gradual depreciation pressures on the PKR throughout 2026, though the differential remains relatively contained compared to historical volatility. Currency analysts attribute the dollar’s marginal strengthening to seasonal factors including import payment cycles, corporate hedging activities for the new fiscal quarter, and ongoing global economic uncertainties that continue to support safe-haven demand for the greenback.
The dollar’s performance in the opening days of 2026 sets an important tone for the year ahead, with market observers closely monitoring US Federal Reserve policy signals, Pakistan’s external account position, and remittance flow trends that traditionally show strength in the post-holiday period.
British Pound Maintains Strong Premium Position
The British Pound (GBP) commanded 353.0931 PKR for spot transactions, with annual forward contracts at 369.1097 PKR, maintaining its substantial premium against the rupee. The pound’s valuation represents one of the highest exchange rates against the PKR among major currencies, with one British pound worth over 353 Pakistani rupees in immediate transactions.
This strong positioning reflects the United Kingdom’s monetary policy trajectory and economic fundamentals as 2026 begins. The forward rate premium of approximately 16 PKR indicates market expectations of continued PKR weakness against sterling through the year, though the differential remains proportionally consistent with other major currencies.
The GBP’s significance extends beyond its exchange rate value, as remittances from the substantial Pakistani diaspora in the United Kingdom represent one of the largest sources of foreign exchange inflows to Pakistan. With hundreds of thousands of Pakistani workers and professionals residing in the UK, the pound’s exchange rate directly impacts billions in annual remittance flows that provide crucial support to Pakistan’s external account position.
Market participants note that the pound’s performance will be influenced throughout 2026 by Bank of England policy decisions, UK economic growth dynamics, and the broader European economic environment that continues to affect Britain’s trade and investment flows.
Gulf Currencies Demonstrate Characteristic Resilience
Saudi Riyal and UAE Dirham Maintain Stability
The Saudi Riyal (SAR) held firm at 74.3513 PKR for spot transactions, with annual forward rates reaching 77.7150 PKR. This stability underscores the enduring economic relationship between Pakistan and Saudi Arabia, supported by robust bilateral trade, substantial investment commitments, and significant remittances from the large Pakistani workforce in the Kingdom.
Saudi Arabia remains one of Pakistan’s most important economic partners in the Gulf region, with the riyal’s stable exchange rate facilitating predictable trade flows and remittance planning for millions of Pakistani families dependent on income from the Kingdom. The forward rate structure suggests market confidence in the SAR’s continued stability, backed by Saudi Arabia’s strong fiscal position and diversification efforts under Vision 2030.
The United Arab Emirates Dirham (AED) was positioned at 75.9459 PKR in immediate exchanges, advancing to 79.9044 PKR over twelve-month contracts. The UAE continues to serve as Pakistan’s largest trading partner in the Gulf Cooperation Council, with Dubai functioning as a critical commercial and logistics hub for Pakistani businesses and entrepreneurs.
The dirham’s consistent strength reflects the Emirates’ diversified economy, stable governance, and position as a regional financial center. The forward premium of approximately 4 PKR aligns with broader market expectations for gradual PKR adjustment while maintaining relative stability in the bilateral exchange rate that facilitates extensive trade and investment flows between the two nations.
Qatari Riyal and Kuwaiti Dinar Show Premium Valuations
The Qatari Riyal (QAR) traded at 76.6096 PKR in the spot market, climbing to 80.5947 PKR for one-year commitments. Qatar’s economic strength, underpinned by its energy sector dominance and strategic infrastructure investments ahead of hosting major international events, continues to support the riyal’s robust positioning against the Pakistani currency.
The exchange rate reflects Qatar’s role as an important economic partner for Pakistan, with growing bilateral trade, investment opportunities, and a significant Pakistani expatriate community that contributes meaningful remittance flows. Market analysts note that the riyal’s stability provides predictability for Pakistani businesses engaged in Qatari markets and for families receiving remittances from Qatar.
The Kuwaiti Dinar (KWD) retained its position as the most valuable currency against the PKR, commanding 909.0755 PKR for spot rates, with forward contracts reaching 956.5435 PKR for annual tenors. This extraordinary valuation—making one Kuwaiti Dinar worth over 900 Pakistani Rupees—reflects Kuwait’s exceptional sovereign wealth, prudent fiscal management, and strong oil revenue position.
The KWD’s premium positioning has significant implications for Pakistani expatriates in Kuwait, whose remittances carry substantial purchasing power when converted to rupees. The forward rate structure, showing an expected appreciation to 956.54 PKR by year-end, suggests market participants anticipate continued KWD strength relative to the PKR, backed by Kuwait’s robust economic fundamentals and substantial foreign asset holdings.
Bahraini Dinar Demonstrates Sustained Premium
The Bahraini Dinar (BHD) stood strong at 740.3528 PKR for spot transactions, progressing to 769.4650 PKR in twelve-month forward contracts. Bahrain’s pegged exchange rate system to the US dollar and stable monetary policy framework continue to support the dinar’s substantial premium over the Pakistani rupee.
The BHD’s consistent strength reflects Bahrain’s position as a regional financial services hub and its managed currency regime that provides stability for trade and investment flows. For Pakistani workers and professionals in Bahrain’s banking, construction, and service sectors, the dinar’s strong exchange rate ensures meaningful remittance value for families back home.
Euro Reflects European Economic Conditions
The Euro (EUR) traded at 293.5003 PKR in the spot market, with one-year forward rates extending to 308.8649 PKR. The euro’s positioning as 2026 begins reflects ongoing monetary policy considerations by the European Central Bank, eurozone economic performance, and the common currency’s role in global financial markets.
The EUR’s exchange rate against the PKR carries importance beyond bilateral Europe-Pakistan trade, as the euro serves as a key reserve currency and influences broader foreign exchange market dynamics. The forward premium of approximately 15 PKR suggests market expectations for moderate PKR weakness against the euro through 2026, though this remains within historical norms for the bilateral exchange rate.
European economic conditions, including inflation dynamics, growth prospects, and ECB policy decisions, will continue to influence the euro’s trajectory against the rupee throughout the year. The exchange rate impacts Pakistani exporters to European markets, importers of European machinery and technology, and the Pakistani diaspora in eurozone countries whose remittances contribute to Pakistan’s foreign exchange reserves.
Comprehensive Global Currency Landscape
Beyond the priority currencies, the January 08 rates encompassed a full spectrum of global currencies reflecting diverse economic conditions worldwide. The Swiss Franc (CHF) was valued at 315.9775 PKR, maintaining its traditional safe-haven premium. The Japanese Yen (JPY) traded at 1.8077 PKR, reflecting Japan’s ongoing ultra-loose monetary policy stance.
Among major Asian currencies, the Chinese Yuan (CNY) was positioned at 38.4695 PKR, with the Offshore Chinese Yuan (CNH) at 38.4578 PKR, reflecting China’s managed exchange rate system. The Hong Kong Dollar (HKD) traded at 35.9266 PKR, and the Singapore Dollar (SGD) commanded 208.1329 PKR, reflecting the city-state’s strong economic fundamentals.
The Indian Rupee (INR) was valued at 3.2629 PKR, maintaining the regional exchange corridor between South Asia’s two largest economies. The Australian Dollar (AUD) stood at 176.5076 PKR, the Canadian Dollar (CAD) at 195.2811 PKR, and the New Zealand Dollar (NZD) at 158.6866 PKR, reflecting commodity-linked currency dynamics.
Among emerging markets, the Turkish Lira (TRY) traded at 7.9383 PKR, continuing to reflect Turkey’s economic challenges. The Malaysian Ringgit (MYR) was at 62.5311 PKR, the Thai Baht (THB) at 8.1754 PKR, and the South African Rand (ZAR) at 15.2887 PKR. The South Korean Won (KRW) traded at 0.1924 PKR, and the Indonesian Rupiah (IDR) at 0.0172 PKR.
The Omani Riyal (OMR) commanded 724.8318 PKR, while the Bangladeshi Taka (BDT) traded at 2.3310 PKR and the Sri Lankan Rupee (LKR) at 0.9593 PKR, reflecting varying economic conditions across South and West Asian economies.
For overseas Pakistanis, the exchange rates present mixed implications. While remittance senders see strong purchasing power for their foreign currency earnings, the high cost of foreign exchange makes international travel, overseas education, and imported consumer goods more expensive for Pakistani residents.
Market Advisory: Exchange rates fluctuate continuously based on market conditions. Businesses and individuals should consult authorized dealers for real-time rates before executing foreign exchange transactions. The rates published represent official SBP mark-to-market valuations for authorized dealer book revaluation purposes.