Ottawa/Karachi – June 10, 2025, 9:02 PM PST – The Canadian Dollar (CAD) has appreciated against the Pakistani Rupee (PKR), climbing to 206.39 PKR today from 201.55 PKR last week, according to open market data. This 2.4% increase in the interplay of market forces and economic conditions affecting both currencies.
Valuation Process
The exchange rate between CAD and PKR is determined by supply and demand in the foreign exchange market, shaped by economic indicators and global trends. The Canadian Dollar operates under a floating exchange rate regime, managed by the Bank of Canada. Its value is influenced by factors such as Canada’s trade performance, commodity prices (particularly oil and metals), interest rates, and investor confidence. A strong Canadian economy, supported by energy exports and stable fiscal policies, often bolsters the CAD.
The Pakistani Rupee, under a managed floating exchange rate, is overseen by the State Bank of Pakistan, which intervenes to mitigate sharp fluctuations. The PKR’s value is driven by Pakistan’s foreign exchange reserves, trade balance, inflation, and remittance inflows. The recent CAD appreciation against the PKR’s weakening may reflect a robust CAD, possibly due to rising global oil prices, alongside pressures on the PKR from Pakistan’s economic challenges, such as reserve depletion or inflationary pressures.
Impact of the Exchange Rate Shift
The Canadian Dollar’s rise against the PKR has significant implications for economic interactions between Canada and Pakistan. Pakistani expatriates and students in Canada benefit from the stronger CAD, as their remittances to Pakistan convert to more PKR, enhancing household purchasing power. However, Pakistani importers of Canadian goods, such as wheat, canola oil, or machinery, face higher costs, as their PKR now buys fewer CAD. This could increase prices for Canadian imports, impacting sectors reliant on agricultural or industrial inputs.
For Canadian exporters, the stronger CAD boosts the value of their PKR earnings, potentially encouraging trade with Pakistan. However, sustained PKR depreciation could widen Pakistan’s trade deficit, particularly if import costs escalate. Analysts highlight the need for Pakistan to strengthen its reserves and address inflation to stabilize the PKR and cushion these effects.
Currency Rates in Pakistan Today
Introduction to CAD and PKR
The Canadian Dollar (CAD), issued by the Bank of Canada, is the official currency of Canada. Subdivided into 100 cents, it is symbolized as $ or C$ to distinguish it from other dollar-based currencies. Introduced in 1858, the CAD is a major global currency, reflecting Canada’s resource-rich economy, driven by energy, agriculture, and manufacturing.
The Pakistani Rupee (PKR), issued by the State Bank of Pakistan, is the official currency of Pakistan. Subdivided into 100 paise (though paise coins are no longer in use), it is symbolized as ₨ or Rs. Operating under a managed float, the PKR’s value fluctuates with economic conditions, making it a key focus for Pakistan’s expatriates, traders, and policymakers. It is used for all transactions within Pakistan.
As the CAD-PKR exchange rate evolves, stakeholders will closely track economic developments in both nations to anticipate future trends.
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