KARACHI, July 8, 2025 – The Saudi Riyal (SAR) strengthened against the Pakistani Rupee (PKR) today, reaching a buying rate of Rs75.79 in the open market, up from yesterday’s rate of Rs75.71 and last week’s closing rate of Rs75.69, according to currency dealers.
The selling rate also increased slightly to Rs76.36. This gradual rise, driven by consistent remittance inflows and seasonal market demand, underscores the Riyal’s vital role in Pakistan’s economy.
Why the Saudi Riyal Matters to Pakistan
The Saudi Riyal is a linchpin for Pakistan due to the deep economic ties between the two nations. Saudi Arabia hosts millions of Pakistani workers in sectors like construction, healthcare, and services, whose remittances are a lifeline for Pakistan’s economy. In May 2025, Saudi Arabia contributed $913.3 million to Pakistan’s remittance inflows, the highest among all countries, as per the State Bank of Pakistan. From July 2024 to May 2025, total remittances surged to $34.9 billion, a 28.8% increase from the previous fiscal year. Today’s exchange rate of Rs75.79 means 1,000 Saudi Riyals now converts to Rs75,790, up from Rs75,710 yesterday, directly boosting household incomes for families reliant on these funds for education, healthcare, and daily expenses.
1 Saudi Riyal = 75.71 Pakistani Rupee
Economic Impact of the Rate Increase
The rise of the Saudi Riyal to Rs75.79 has significant implications. For Pakistani families, the stronger Riyal increases the value of remittances, enhancing purchasing power amid rising living costs. Businesses importing goods like oil from Saudi Arabia benefit from the Riyal’s stability, which ensures predictable costs, though a stronger Riyal may slightly elevate import expenses, impacting Pakistan’s trade deficit. On a broader scale, the stable Riyal supports Pakistan’s foreign exchange reserves, which surpassed $11 billion in October 2024, helping curb inflation and manage external debt. A weaker Rupee, as seen earlier in June, can boost export competitiveness, but the current trend strengthens the Rupee’s value, aiding economic stability.
Understanding the Saudi Riyal and Pakistani Rupee
The Saudi Riyal (SAR), subdivided into 100 halala, is Saudi Arabia’s official currency, managed by the Saudi Central Bank and pegged to the US dollar for stability. This makes it a trusted currency for global trade and remittances, particularly for the Pakistani diaspora in Saudi Arabia. The Pakistani Rupee (PKR), symbolized by ₨, has been Pakistan’s currency since 1948, regulated by the State Bank of Pakistan under a managed floating exchange rate. Its value is shaped by inflation, trade balances, and remittance inflows, with the Riyal-PKR rate reflecting market supply and demand dynamics.
Future Outlook
The Saudi Riyal’s climb to Rs75.79 signals ongoing market strength, fueled by remittances and trade. Currency traders and policymakers should remain vigilant, as even small shifts in the exchange rate can influence remittances, import costs, and economic planning. For millions of Pakistanis, both at home and abroad, the Riyal’s steady value remains a critical driver of financial security and economic resilience.
Leave a Comment