The Pakistani rupee is anticipated to appreciate significantly, potentially by as much as Rs55, which translates to about a 20% increase, possibly reaching 220 against the US Dollar within the next year.
A report by ProPakistani has indicated that the US Dollar is expected to weaken against the Pakistani Rupee.
Contributing to this potential appreciation are expected declines in inflation and interest rates, which could alleviate some of the pressure on the exchange rate, according to the report, which cites an anonymous former official from the State Bank.
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Investment banking giant Goldman Sachs has previously forecasted a similar positive trajectory for the Pakistani rupee. It was nearly 20% undervalued and projected about a 26% nominal return over the next 12 months.
The report also highlighted that political stability and external financing risks, managed through an extended arrangement with a global financial institution, would significantly influence macroeconomic factors.
