Karachi, July 4, 2025 —The Saudi Riyal (SAR) incurred a meagre loss against the Pakistani Rupee (PKR) in the open market on Friday.
According to open market data, the buying rate for the Saudi Riyal was recorded at Rs75.69, while the selling rate stood at Rs76.5.
The stability of the SAR is largely attributed to its peg to the US dollar, which ensures minimal volatility and makes it a reliable currency for international transactions. This predictability is especially crucial for millions of Pakistani expatriates working in Saudi Arabia, whose monthly remittances form a critical pillar of Pakistan’s foreign exchange earnings.
Pakistanis frequently purchase Saudi Riyals to receive money transfers from relatives working in Saudi Arabia. With the Riyal being the primary currency used by over two million Pakistani workers in the Gulf nation, demand for SAR remains consistently high in local forex markets.
About SAR and PKR:
The Saudi Riyal (SAR) is the official currency of Saudi Arabia, subdivided into 100 smaller units called *halala*. Managed by the Saudi Central Bank, the Riyal has been historically tied to the US dollar, ensuring long-term stability and making it a preferred currency for trade and remittances in the region.
The Pakistani Rupee (PKR), denoted by the symbol “₨”, is Pakistan’s official currency and has been in circulation since 1948. Regulated by the State Bank of Pakistan under a managed floating exchange rate regime, its value fluctuates based on macroeconomic indicators such as inflation, trade deficit, and foreign exchange reserves.
The strong economic ties between Pakistan and Saudi Arabia, particularly through labor remittances, continue to shape the dynamics of the SAR-PKR exchange rate. In May 2025 alone, Saudi Arabia contributed $913.3 million in remittances to Pakistan—the highest among all countries—bringing the total inflow for the period July 2024 to May 2025 to $34.9 billion, reflecting a 28.8% growth year-on-year.
These remittances not only support household incomes in Pakistan but also play a vital role in stabilizing the national economy and strengthening foreign exchange reserves.
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