Credit rating agency Fitch Ratings has indicated that the State Bank of Pakistan (SBP) is likely to allow the Pakistani rupee to gradually weaken as part of efforts to manage pressure on the country’s current account amid economic growth.

In a report cited by Bloomberg, Fitch’s Asia Pacific sovereign ratings director, Krisjanis Krustins, forecasted the rupee to decline to 285 against the US dollar by the end of June 2025, with a further slide to 295 expected by the close of the next fiscal year in 2026.

So far in 2025, the rupee has depreciated approximately 0.7 percent, ranking it among the weaker currencies in the region, according to Bloomberg data.

The State Bank of Pakistan has not yet issued any official comment on this forecast.

During a Fitch webinar on Tuesday, Krustins acknowledged the SBP’s concerns, stating, “While they’re managing that by holding onto higher rates for longer, we think they’ll also manage that by allowing a bit more currency depreciation.”