KARACHI, August 27, 2025: The Saudi Riyal (SAR) ticked up to Rs75.13 against the Pakistani Rupee (PKR) in today’s open market, a slight increase from Rs75.12 on August 26 but well below the July 28 peak of Rs76.03, according to currency dealers.
SAR to PKR- Daily Updates
The selling rate rose to Rs75.70. This modest uptick, fueled by steady remittance inflows and market dynamics, reinforces the Saudi Riyal’s pivotal role in Pakistan’s economy.
Why the Saudi Riyal Drives Pakistan’s Economy
The Saudi Riyal is a vital economic force for Pakistan, underpinned by strong ties with Saudi Arabia, where millions of Pakistani workers power industries like construction, healthcare, and services. In May 2025, Saudi Arabia contributed $913.3 million to Pakistan’s remittance inflows, the largest share, per the State Bank of Pakistan. From July 2024 to May 2025, total remittances surged to $34.9 billion, a 28.8% rise year-over-year. Today’s rate of Rs75.13 converts 1,000 Saudi Riyals to Rs75,130, up from Rs75,120 yesterday, boosting household budgets for essentials like education, healthcare, and daily expenses.
Economic Impact of the Riyal’s Rise
The Saudi Riyal’s slight increase to Rs75.13 has immediate and broader effects. For households, the uptick enhances remittance value, supporting purchasing power amid rising costs. Businesses importing oil and petrochemicals from Saudi Arabia benefit from the Riyal’s dollar-pegged stability, though the higher rate may marginally raise import costs, impacting Pakistan’s trade balance. On a macroeconomic level, the Riyal’s performance strengthens Pakistan’s foreign exchange reserves, which surpassed $11 billion in October 2024, aiding inflation control and debt management. A weaker Rupee can boost export competitiveness, but this rise supports Pakistan’s economic stability.
Understanding the Saudi Riyal and Pakistani Rupee
The Saudi Riyal (SAR), divided into 100 halala, is Saudi Arabia’s currency, managed by the Saudi Central Bank and pegged to the US dollar for reliability. This stability makes it a trusted choice for remittances and trade, especially for Pakistanis in the Kingdom. 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 reflects inflation, trade flows, and remittance inflows, with the Riyal-PKR rate driven by market dynamics.
Outlook for the Riyal-PKR Exchange Rate
The Saudi Riyal’s rise to Rs75.13 signals renewed market strength, supported by remittances and trade with Saudi Arabia. Traders and policymakers should monitor these trends closely, as even small shifts can affect remittances, import costs, and economic planning. For millions of Pakistanis, the Riyal’s reliable value remains a financial lifeline, sustaining Pakistan’s economic resilience.
Sources: State Bank of Pakistan, Forex Association of Pakistan
Leave a Reply