Islamabad, January 30, 2026 – The Federal Bank of Pakistan (SBP) announced today an increase in the dollar rate by 50 paisa, marking a significant shift in the country’s currency dynamics. This move, effective immediately, reflects ongoing pressures on foreign exchange reserves. The decision has sparked concern among businesses and consumers, as it may impact import costs and overall economic stability.
Key Developments in Currency Rates
Today’s update from the SBP reveals a revised dollar rate of PKR 305.50, up from PKR 305.00 yesterday. The euro strengthened slightly to PKR 332.50, while the British pound inched up to PKR 385.50. The Chinese yuan saw a modest increase to PKR 46.25, reflecting global market trends. This adjustment, the second in a month, underscores the central bank’s efforts to stabilize the domestic currency.
Impact on the Pakistan Economy
Economists predict this rate hike could lead to higher inflation and reduced purchasing power for consumers. “The increase in the dollar rate will directly affect import prices, particularly for essential goods,” said Dr. Shakeel Qureshi, an economic analyst. Industries reliant on imported raw materials, such as textiles and pharmaceuticals, are expected to face rising costs, potentially leading to job losses and economic strain.
Background Context
In recent months, Pakistan has grappled with a volatile currency market, driven by geopolitical tensions and global economic uncertainties. The SBP has implemented measures to shore up foreign exchange reserves, including targeted Dollar Exchange Scheme (TEDS) reforms. Despite these efforts, the currency continues to reflect broader economic challenges, with the NEPRA decision on energy prices adding to the pressure.
Latest Updates and Market Reactions
The ISPR issued a statement today, assuring the public of the government’s commitment to economic stability. Meanwhile, the High Court has set a hearing on a tax reforms case, which may influence future policy decisions. Financial markets remain cautious, with investors keeping a close eye on government responses and the cumulative impact of recent currency adjustments.
As the financial landscape evolves, Pakistan’s economic outlook hinges on the central bank’s next moves and the broader implications of ongoing currency fluctuations. Stay informed with the latest updates from Faiz.tv.
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