In 2025, one question is on every Pakistani’s mind: Why is the UK pound (GBP) getting more expensive every week? With exchange rates climbing to record highs, businesses, students, and parents are feeling the pressure. The truth is, this isn’t just about currency speculation or inflation, it’s about a real imbalance in demand and supply. From foreign education to financial trends, several deep-rooted reasons are pushing the pound’s rate up in Pakistan.
Let’s break it down simply and clearly.
1. The Pound to PKR Rate Is Rising, But Why?
The GBP rate has seen a consistent rise over the last 12 months. While global economic factors do play a role, the situation in Pakistan is unique. There’s a very high demand for pounds locally, especially from students going abroad, families supporting them, and agents handling UK visa cases.
At the same time, Pakistan’s foreign exchange reserves are limited, and the pound supply in open market channels is low. This demand-supply mismatch is one of the strongest reasons the pound rate is so high in Pakistan.
2. Outflow of Pounds Due to Study Abroad Trends
One of the biggest hidden reasons behind this surge is the massive outflow of GBP due to international education. Thousands of students from Pakistan are applying for UK study visas every month. To secure admission and process their visas, they need to transfer large amounts sometimes up to £30,000 for tuition, living, and visa-related expenses.
This bulk movement of currency is not a one-time event it happens in cycles throughout the year, especially before admission deadlines.
3. Tuition Fees in the UK Are Increasing Every Year
UK universities are becoming more expensive for international students. On average, students pay anywhere between £10,000 to £25,000 annually for tuition. When thousands of students prepare for their studies, millions of pounds are bought from the local Pakistani market, increasing demand sharply.
This tuition fee outflow is directly linked with the high GBP rate in Pakistan.
4. Pin Cloud & Third-Party Holding Accounts Add More Demand
Many students and agents use third-party solutions like Pin Cloud accounts to hold or transfer pounds for university payments. These systems operate in parallel to traditional banking channels and add unrecorded pressure on local currency markets.
As these holding accounts absorb large volumes of pounds, local markets feel the shortage, resulting in a higher rate.
5. Limited GBP Supply in Pakistan Creates Rate Pressure
Unlike USD, the pound isn’t as readily available in Pakistan. Local banks and exchange companies don’t maintain large GBP reserves. So when thousands of buyers enter the market (especially before student intakes like September and January), the shortage causes a sudden spike in price.
This supply scarcity is one of the technical reasons why the pound to PKR for students is hitting record highs.
6. Impact on Students and Families in Pakistan
This increase isn’t just a currency story, it’s becoming a serious financial challenge. Families trying to send their children abroad for higher education now need to arrange extra money just to account for the rising exchange rate. A difference of just 5 PKR per pound means an extra Rs. 250,000 on a £5,000 transaction.
That’s a major burden on middle-class families.
7. What Future Students Can Do to Prepare
If you’re planning to study in the UK from Pakistan, here’s how you can reduce the financial pressure:
- Plan your funding early. Secure your GBP before the admission peak.
- Stay updated on forex trends. Watch market signals before converting large amounts.
- Consider scholarships. Apply to universities that offer financial aid.
- Choose experienced consultants who understand currency cycles.
8. How BFL Consultants Can Help
At BFL Consultants, we don’t just handle your university admission — we guide you through every financial step. Our expert counselors provide up-to-date advice on currency rates, affordable university options, and smart planning to reduce your overall cost.
Whether you’re planning for the UK, Australia, or Canada, we’ll help you avoid unnecessary currency shocks and make your journey smoother.
A Currency Trend Driven by Education & Demand
The rising pound rate in Pakistan isn’t just about market forces — it’s a reflection of growing international ambitions, rising tuition fees, and limited foreign reserves. As more Pakistani students dream of UK education, the demand for GBP continues to rise. For students and families, early planning and trusted guidance are the best ways to deal with the situation.
