USD to PKR: Dollar Rate Today in Pakistan- October 23, 2025

The US Dollar (USD) rate against the Pakistani Rupee (PKR) has resumed its climb, settling at 283.08 PKR per USD today, October 23, 2025. This rate indicates a tightening of the exchange market following a week of volatility.

The weekly trend shows the USD firmly anchored above the 280-mark, having started the prior week around 281.85 PKR.

The currency experienced sharp upward movements, peaking near 283.89 PKR (Oct 17) and 283.82 PKR (Oct 20), before slightly easing. However, the last 24-48 hours have shown renewed upward momentum, with the rate climbing from approximately 282.82 PKR to today’s 283.08 PKR, underscoring persistent demand for the greenback.

Valuation Criteria and Key Economic Impact

The fundamental cause of the Pakistani Rupee’s continued weakness is the structural imbalance in Pakistan’s economy, leading to high dollar demand. This valuation is principally determined by two factors: a large and persistent Current Account Deficit (driven by a high import bill, particularly for energy and raw materials) and the corresponding pressure on Foreign Exchange Reserves. The country must buy dollars to pay for imports and service external debt, which consistently drives the Pakistani Rupee down. Furthermore, domestic inflation and global market sentiment towards riskier emerging markets also play a crucial role. Any uncertainty regarding IMF tranches or external financing signals often leads to swift depreciation, as traders anticipate lower dollar supply.

This consistently high USD rate, hovering around the 283 level, has several critical consequences for the Pakistani economy. Firstly, it directly exacerbates cost-push inflation, as the local currency cost of all imported goods, especially petroleum products and essential raw materials, increases immediately. This filters down to consumers, making manufactured goods and transportation more expensive. Secondly, the higher rate drastically increases the burden of external debt, requiring the government to allocate more Rupee resources for dollar-denominated repayments, thereby straining the fiscal budget. While a weak Rupee theoretically boosts exports by making them cheaper, the net benefit is often marginal due to the high imported content of many Pakistani products. The only sector that benefits unequivocally is the recipients of remittances, who enjoy a higher Rupee conversion rate for funds sent home by overseas workers.