The Pakistani Rupee (PKR) is likely to appreciate against the US dollar in fiscal year FY26 due to strengthening external accounts and easing inflationary pressures, AKD Research said in a brief market snapshot.
The brokerage noted that lower global oil prices, a reduced import bill, and a steady rise in foreign exchange reserves have significantly improved Pakistan’s external position since the last Monetary Policy Committee meeting.
Strong remittance inflows and ongoing fiscal consolidation are also contributing to greater macroeconomic stability.
The report adds that these factors, combined with expectations of contained inflation and relatively positive real interest rates, are likely to support investor confidence and provide backing for the local currency.
AKD Research expects the State Bank of Pakistan (SBP) to maintain its current policy stance in the near term, while continuing to assess both domestic and global economic developments.
It further highlights that declining energy costs and an improving balance of payments outlook could play a key role in strengthening the rupee during FY26.
The brokerage projects average real interest rates of around 4.5 percent over the next 12 months, which it says may encourage capital inflows and help stabilize currency markets.
With foreign exchange reserves gradually rising and external vulnerabilities easing, AKD Research believes the rupee will remain well supported and may show appreciation against the US dollar over the course of FY26.
