Analysts expect the Pakistani Rupee (PKR) to weaken against the US Dollar in the coming months. According to Trading Economics, the PKR is projected to decrease to 293.52 against the USD by the end of September 2023 and possibly even lower at 317.29 by June 2024.
The Ministry of Energy (Power Division) also predicts the PKR to reach 325 against the USD by the end of the fiscal year. Bank of America (BoFA) Securities forecasts a more significant depreciation, with the rupee potentially falling to as low as 340 against the dollar by June 2024.
Factors contributing to this depreciation include debt, inflation, and high policy rates. BoFA suggests that Pakistan’s economy may grow by 2.5 percent this year, which is below the government’s target of 3.5 percent for FY24.
