The Pakistani rupee continued its upward trajectory for the 10th straight session, appreciating by Rs2.40 in total to close at 282.57 per US dollar on Tuesday. While this reflects short-term resilience, the rupee remains down 1.42% on a calendar-year basis.

Meanwhile, the State Bank of Pakistan (SBP) announced an aggressive domestic borrowing plan of Rs6.175 trillion for August to October 2025. This includes Rs3.675 trillion via Treasury Bills and Rs2.5 trillion through Investment Bonds. Seven MTB auctions and multiple PIB issuances are scheduled during the period, with fixed and floating rate instruments in varied tenors.

The move aims to meet fiscal targets while adhering to IMF restrictions on direct borrowing. However, the borrowing may continue to fuel inflation in the short term.