The Saudi Riyal (SAR) edged up to Rs74.97 against the Pakistani Rupee (PKR) in today’s open market, recovering from Rs74.65 recorded a day earlier, according to currency dealers. Despite this improvement, the rate remains below the mid-2025 high of Rs76.03 seen in July. The selling rate has also adjusted upward to Rs75.54.
This modest appreciation reflects renewed buying interest and steady remittance inflows, reinforcing the Saudi Riyal’s importance to Pakistan’s economy. For millions of Pakistani households, the Riyal acts as a vital financial link, carrying earnings from workers employed in Saudi Arabia’s construction, healthcare, and hospitality sectors back home.
Figures from the State Bank of Pakistan show that Saudi Arabia contributed $913.3 million in remittances in May 2025, the highest share among all source countries. Between July 2024 and May 2025, total remittances reached $34.9 billion, a strong 28.8% increase year over year. At the current exchange rate, 1,000 Saudi Riyals now convert to Rs74,970, compared to Rs74,650 yesterday, offering a welcome lift to household budgets for education, healthcare, and daily expenses.
The Riyal’s rise carries both immediate and broader economic implications. For families, stronger rates improve purchasing power amid rising living costs. For businesses importing oil and petrochemicals from Saudi Arabia, the Riyal’s dollar-pegged stability provides predictability, though the slight uptick may marginally increase import costs and influence the trade balance.
At the macroeconomic level, steady Riyal inflows continue to support Pakistan’s foreign exchange reserves, which crossed $11 billion in October 2024, helping with inflation management and debt servicing. Meanwhile, a relatively weaker Rupee enhances export competitiveness, supporting overall economic resilience.
Issued by the Saudi Central Bank and divided into 100 halala, the Saudi Riyal remains pegged to the US dollar, making it a reliable currency for trade and remittances. The Pakistani Rupee (₨), in circulation since 1948, operates under a managed floating exchange rate system overseen by the State Bank of Pakistan, with its value shaped by inflation, trade flows, and remittance inflows.
Overall, the Saudi Riyal’s move to Rs74.97 signals renewed momentum, supported by strong remittances and close trade ties with Saudi Arabia. While the change is modest, even small currency movements can affect household incomes, import costs, and economic planning. For millions of Pakistanis, the Riyal continues to serve as a dependable anchor, supporting families and strengthening economic stability.
