The GBP to PKR exchange rate has recently faced significant challenges influenced by various economic and geopolitical factors. The British Pound (GBP) is currently under pressure due to fiscal uncertainties in the UK, particularly surrounding Chancellor Rachel Reeves's upcoming budget which involves tax increases and spending cuts aimed at addressing fiscal concerns. This uncertainty, coupled with calls for Reeves to resign over personal matters, has contributed to the pound's vulnerability in the market.
Recent data indicates that the GBP has struggled to maintain momentum, with a notable decline to 90-day lows near 369.4 PKR, approximately 2.7% below its three-month average of 379.8 PKR. Analysts suggest that the limited supply of stronger economic data from the UK might lead to continued tensions for the currency.
On the other hand, the Pakistani Rupee (PKR) is experiencing a complex landscape marked by significant geopolitical tension and central bank interventions. The rupee has depreciated by 12% against the US dollar since January 2025, with forecasts predicting the exchange rate could reach 100 PKR/USD by early 2026. The State Bank of Pakistan has actively intervened in the foreign exchange market to stabilize the currency, purchasing $9 billion to support its reserves.
Concurrently, international assistance, particularly from the IMF, is fostering expectations for long-term improvements in the PKR. This support is aligned with reforms including a more liberalized market and improved tax collection. Analysts emphasize that these measures, while potentially inflationary in the short term, could bolster the rupee’s resilience in the long run.
The interplay between these developments has left the GBP to PKR exchange rate in a stable range of about 4.5%, fluctuating between 369.4 and 386.1 PKR. Experts suggest that the combined impact of the UK’s fiscal challenges and Pakistan's socio-economic policies will likely dictate the currency dynamics in the near future, making it essential for individuals and businesses to stay updated on these trends for their international transactions.
