Despite escalating tensions with India, Pakistan’s currency market has remained stable, with foreign exchange companies supplying $25 million daily to the interbank market and offering to provide up to $1 billion monthly to the government in case of emergency, according to Malik Bostan, Chairperson of the Exchange Companies Association of Pakistan (ECAP).

Bostan highlighted that the Pakistani rupee has held steady despite recent Indian airstrikes and Pakistan’s reported shooting down of 25 Indian drones. Exchange firms confirmed there is currently no significant demand for dollars in the open market, and no signs of panic have emerged among traders.

Looking ahead, Bostan said dollar inflows are expected to increase once flight operations resume. Over the past two years, the State Bank of Pakistan has purchased $9 billion to support the exchange rate, while exchange companies contributed $6 billion to the interbank market in the last year alone.

He also noted that if properly facilitated, monthly remittances could potentially double from $4 billion to $8 billion. Bostan claimed the real value of the dollar should be around Rs. 250 but remains artificially suppressed due to pressure from the IMF and exporters.