KARACHI, August 28, 2025: The Saudi Riyal (SAR) slipped to Rs75.11 against the Pakistani Rupee (PKR) in today’s open market, down slightly from Rs75.13 on August 27 and significantly lower than Rs76.03 on July 28, according to currency dealers.
SAR to PKR Rate- Daily Updates
The selling rate adjusted to Rs75.68. This minor decline, driven by market adjustments and sustained remittance inflows, highlights the Saudi Riyal’s critical role in Pakistan’s economy.
Why the Saudi Riyal Fuels Pakistan’s Economy
The Saudi Riyal is a vital economic driver for Pakistan, supported by deep ties with Saudi Arabia, where millions of Pakistani workers contribute to industries like construction, healthcare, and services. In May 2025, Saudi Arabia accounted for $913.3 million of Pakistan’s remittance inflows, the largest share, per the State Bank of Pakistan. From July 2024 to May 2025, total remittances reached $34.9 billion, a 28.8% increase year-over-year. Today’s rate of Rs75.11 converts 1,000 Saudi Riyals to Rs75,110, down from Rs75,130 yesterday, slightly impacting household budgets for essentials like education, healthcare, and daily expenses.
Economic Impact of the Riyal’s Decline
The Saudi Riyal’s drop to Rs75.11 has immediate and broader effects. For households, the lower rate marginally reduces remittance purchasing power amid rising costs. Businesses importing oil and petrochemicals from Saudi Arabia benefit from the Riyal’s dollar-pegged stability, and this decline eases import costs, supporting Pakistan’s trade balance. On a macroeconomic level, the Riyal’s performance continues to bolster Pakistan’s foreign exchange reserves, which surpassed $11 billion in October 2024, aiding inflation control and debt management. A weaker Rupee enhances export competitiveness, aligning with Pakistan’s economic resilience.
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 medium 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 is shaped by inflation, trade flows, and remittance inflows, with the Riyal-PKR rate reflecting market dynamics.
Outlook for the Riyal-PKR Exchange Rate
The Saudi Riyal’s decline to Rs75.11 reflects ongoing market corrections, 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 stability.
Sources: State Bank of Pakistan, Forex Association of Pakistan
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