Pakistani Rupee Experiences Minor Decline Against Major Foreign Currencies

The Pakistani rupee has experienced a modest decline against major foreign currencies. Currently, the US dollar (USD) is trading at Rs278.15 for selling and Rs277.65 for buying.

The Euro (EUR) is valued at Rs303.02 for selling and Rs302.47 for buying, while the British pound (GBP) is priced at Rs363.60 for selling and Rs362.94 for buying. The Canadian dollar (CAD) is available at Rs201.92 for selling and Rs201.56 for buying, and the Australian dollar (AUD) stands at Rs186.23 for selling and Rs185.89 for buying.

In the Gulf region, the UAE dirham (AED) is selling for Rs75.73 and buying for Rs75.60. The Saudi riyal (SAR) is priced at Rs74.09 for selling and Rs73.96 for buying, and the Qatari riyal (QAR) has a selling rate of Rs76.31 and a buying rate of Rs76.17. The Swiss franc (CHF) is trading at Rs322.75 for selling and Rs322.17 for buying, while the Kuwaiti dinar (KWD), known for its high value, is priced at Rs906.97 for selling and Rs905.34 for buying, making it one of the most valuable currencies worldwide.

In a related financial update, tax advisory firm Tola Associates predicts that banks may face an additional tax burden of Rs197 billion in 2025 due to their advance-to-deposit ratio (ADR). This additional tax, introduced in 2022, aims to encourage banks to prioritize lending to industries over government borrowing. However, many banks are requesting exemptions, as tax rates for government lending range from 49% to 55% based on their ADR.

In 2024, banks paid Rs612 billion in taxes, benefiting from certain exemptions. The potential Rs197 billion tax liability could be incurred if banks do not meet the ADR threshold, although they can reduce this by increasing lending to the private sector before the year ends. There have been allegations against banks for engaging in “round-tripping” to manipulate their lending statistics, a practice that former state minister Ashfaq Tola has criticized. Despite lobbying for tax relief, the government, limited by an IMF loan agreement, is unable to provide such exemptions.

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