UK Pound to PKR Exchange Rate Surges, Impacts Businesses
The surge in the GBP/PKR rate has significant implications for stakeholders, including importers, exporters, and overseas workers, with potential impacts on inflation, trade balances, and remittance flows, emphasizing the need for close monitoring of the exchange rate and its underlying factors.
The UK Pound (GBP) to Pakistani Rupee (PKR) exchange rate has reached 364.00, with a buying rate of 361.56 and a selling rate of 365.00, influenced by market demand, geopolitical developments, and economic indicators, significantly impacting businesses, travelers, and remittance flows between the two countries.
The exchange rate is determined by complex interactions between market forces and macroeconomic factors, including supply and demand in the foreign exchange market, central bank policies, inflation rates, and political and economic stability. The surge in the GBP/PKR rate has implications for various stakeholders, including importers, exporters, and overseas workers, with importers facing higher costs and potentially fueling inflation, while exporters may benefit from the PKR depreciation making Pakistani goods cheaper abroad.
The UK's economic resilience post-pandemic and the Bank of England's aggressive interest rate hikes to combat inflation have attracted foreign capital, increasing demand for GBP. In contrast, Pakistan's economic challenges, including soaring inflation, a widening current account deficit, and political uncertainty, have put pressure on the PKR. Global market sentiment, with the GBP becoming a safe-haven currency amid geopolitical tensions and dollar volatility, has also contributed to the surge in the GBP/PKR rate.
Remittances from overseas Pakistanis have provided some support to the PKR, with over 1.5 million Pakistani expatriates in the UK contributing to remittances, and a 1% increase in January 2025 compared to December 2024. The UK-Pakistan trade in goods and services has also increased by 3.0% in the four quarters to Q3 2024, reaching £4.4 billion, highlighting the significance of the exchange rate for bilateral trade and economic relations.
As the UK Pound to PKR exchange rate continues to fluctuate, it is essential for businesses, travelers, and individuals to stay informed about currency valuations to make smarter financial decisions, considering the complex interactions between market forces and macroeconomic factors that influence the exchange rate.
