Karachi/Ottawa, June 24, 2025 – The Canadian Dollar (CAD) is trading at 206.34 Pakistani Rupee (PKR) today, reflecting a modest decline from 206.98 PKR on June 21, a further drop from 207.32 PKR on June 18, and down from a weekly high of 208.31 PKR earlier this week, according to open market data.
This fluctuation in the CAD/PKR exchange rate underscores the interplay of global economic trends and domestic pressures shaping the valuation of both currencies.
1 Canadian Dollar= 206.34 Pakistani Rupees
Introduction to CAD and PKR
The Canadian Dollar (CAD), symbolized as CAD C$, is the official currency of Canada, managed by the Bank of Canada under a floating exchange rate regime. Subdivided into 100 cents, the CAD is a major global currency, often influenced by Canada’s commodity-driven economy, particularly oil and metal exports, as well as interest rate policies and trade performance. Its stability and value make it a key player in international forex markets.
The Pakistani Rupee (PKR), symbolized as ₨ or Rs, is the official currency of Pakistan, regulated by the State Bank of Pakistan under a managed floating exchange rate. Subdivided into 100 paise (though paise are rarely used), the PKR has faced persistent depreciation due to high inflation, trade deficits, and limited foreign exchange reserves. Introduced in 1948, it serves as the primary medium of exchange across Pakistan, from urban centers like Karachi to rural villages, and is highly sensitive to economic and political developments.
Currency Rates in Pakistan Today
Valuation Dynamics
The CAD’s slight decline against the PKR this week reflects a combination of market corrections and economic factors. Earlier this month, the CAD reached a high of 208.31 PKR, driven by robust oil prices, a cornerstone of Canada’s export economy, and steady monetary policy from the Bank of Canada. However, the recent dip to 206.34 PKR suggests short-term profit-taking by traders and shifts in global risk sentiment, as reported by forex analysts.
The PKR, meanwhile, continues to grapple with Pakistan’s macroeconomic challenges, including inflation rates hovering around 12-15%, a persistent trade imbalance, and dwindling foreign exchange reserves. The State Bank of Pakistan’s efforts to stabilize the PKR through tighter monetary policy have yielded mixed results, leaving the currency vulnerable to external pressures. Despite the CAD’s decline, the PKR has not significantly strengthened, indicating broader structural issues in Pakistan’s economy.
Key factors influencing the CAD/PKR exchange rate include:
- Commodity Prices: Canada’s economy benefits from elevated oil prices, which bolster the CAD. A temporary softening in global oil demand may have contributed to the CAD’s recent dip.
- Monetary Policy: The Bank of Canada’s steady interest rate stance supports investor confidence in the CAD, while Pakistan’s central bank faces pressure to balance inflation and growth.
- Trade and Remittances: Limited direct trade between Canada and Pakistan means remittances from the Pakistani diaspora in Canada play a larger role in PKR demand. A stronger CAD earlier this week amplified remittance inflows, though the current dip slightly reduces this effect.
Economic Impacts
The Canadian Dollar’s fluctuations against the PKR have tangible implications for economic interactions between Canada and Pakistan:
- Remittances: Pakistani expatriates in Canada, a significant source of remittances, benefit from a relatively strong CAD. At 206.34 PKR, remittances convert to more PKR than earlier this year (e.g., 190.96 PKR in February 2025), supporting household incomes in Pakistan. However, the slight decline from 208.31 PKR reduces this advantage marginally.
- Trade and Imports: Pakistani businesses importing Canadian goods, such as canola oil, wheat, or machinery, face higher costs when the CAD strengthens. The recent dip to 206.34 PKR offers minor relief, but import costs remain elevated compared to a month ago (201.55 PKR). Conversely, Canadian importers of Pakistani textiles may find goods slightly more expensive as the PKR gains marginally.
- Travel and Education: Pakistani students and travelers in Canada face higher costs for tuition and living expenses due to the CAD’s overall strength this month. A CAD at 206.34 PKR, though lower than 208.31 PKR, still strains budgets compared to earlier stability at 201.55 PKR in late May.
- Inflation and Cost of Living: A marginally weaker CAD eases imported inflation in Pakistan, as goods priced in Canadian Dollar become slightly cheaper. However, Pakistan’s broader inflationary pressures persist, limiting the relief for consumers.
Outlook
Market analysts anticipate continued volatility in the CAD/PKR exchange rate, with the CAD likely to remain sensitive to global oil prices and Canada’s economic data, such as inflation and employment figures. For the PKR, potential strengthening could hinge on increased remittance inflows or progress in securing IMF support, though domestic challenges like inflation and reserve depletion pose risks.
Stakeholders, including traders, policymakers, and expatriates, are urged to monitor forex developments closely. As the CAD-PKR rate evolves, its impacts on remittances, trade, and inflation will remain critical for both nations’ economies.
