KARACHI – UK Pound recorded significant gains against Pakistani rupee as the latest exchange rate stood at Rs364.20 on Wednesday, 19 March 2025
The selling rate of the pound also registered upward trend as it is being sold for Rs367 in the South Asian country.
The currency code for the British Pound Sterling is GBP, which is the official currency of the United Kingdom. The pound sign (£) is used for the British Pound Sterling, also known as “sterling.”
Currency exchange rates are influenced by several key factors that determine how much one currency is worth relative to another.
Supply and Demand: The most fundamental factor is market demand for a currency. If more people or businesses need a currency for trade or investment, its value rises. If demand drops, the currency’s value falls.
Interest Rates: Central banks set interest rates, which impact the attractiveness of a currency. Higher interest rates typically lead to a stronger currency as investors seek better returns. Conversely, lower rates can weaken a currency.
Economic Indicators: Economic performance plays a crucial role. Strong indicators, such as low inflation, high GDP growth, and a trade surplus, tend to increase confidence in a country’s currency, boosting its value. Weak economic performance can have the opposite effect.
Political Stability: A country’s political environment affects investor confidence. Countries with stable governments and economic policies tend to see stronger currencies, while instability may lead to depreciation.
Market Sentiment and Speculation: Currency values are also driven by investor perceptions and expectations about future events. Speculators may buy or sell currencies based on anticipated economic or political changes, influencing short-term movements.
UK Remittances to Pakistan
Over 1.5 million Pakistani expatriates live in the United Kingdom, making it a significant contributor to remittances received by Pakistan from Britain.
Overseas Pakistanis living in the United Kingdom remitted $501.8 million during February 2025, up by 13.12% compared to $443.6 million in January 2025. On yearly basis, inflows from the UK moved up by 45.03%.
