KARACHI/RIYADH: August 8, 2025: The Saudi Riyal (SAR) declined to Rs75.28 against the Pakistani Rupee (PKR) in today’s open market, down from Rs75.30 on August 6 and significantly lower than Rs76.03 on July 28, currency traders reported.
SAR to PKR- Daily Updates
The selling rate adjusted to Rs75.85. This continued downward trend, influenced by market corrections and sustained remittance inflows, underscores the Saudi Riyal’s enduring significance in Pakistan’s financial ecosystem.
Economic Impacts of the Riyal’s Decline
The Saudi Riyal’s drop to Rs75.28 has both immediate and broader effects. For Pakistani households, the Riyal’s still-robust value supports remittance purchasing power, with 1,000 Saudi Riyals converting to Rs75,280, down from Rs75,300 on August 6, slightly reducing funds for essentials like education, healthcare, and daily expenses amid rising costs. Businesses importing goods, such as oil and petrochemicals from Saudi Arabia, benefit from the Riyal’s dollar-pegged reliability, and this decline further eases import costs, providing relief to 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, and this adjustment supports Pakistan’s economic resilience.
Why the Saudi Riyal Is Vital for Pakistan
The Saudi Riyal remains a cornerstone of Pakistan’s economy, fueled by strong ties with Saudi Arabia, where millions of Pakistani workers contribute to sectors like construction, healthcare, and services. In May 2025, Saudi Arabia accounted for $913.3 million of Pakistan’s remittance inflows, the largest share, according to the State Bank of Pakistan. From July 2024 to May 2025, total remittances reached $34.9 billion, a 28.8% increase from the previous fiscal year. The Riyal’s dependable value continues to drive economic activity and support families across Pakistan.
Overview of the Saudi Riyal and Pakistani Rupee
The Saudi Riyal, divided into 100 halala, is Saudi Arabia’s currency, managed by the Saudi Central Bank and tied to the US dollar for consistency. This reliability makes it a trusted medium for remittances and trade, particularly for Pakistanis in the Kingdom. The Pakistani Rupee, symbolized by ₨, has been Pakistan’s currency since 1948, overseen by the State Bank of Pakistan under a managed floating exchange rate system. 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 Rs75.28 reflects ongoing market adjustments, supported by remittances and trade with Saudi Arabia. Traders and policymakers should remain vigilant, as even small shifts can impact remittances, import costs, and economic strategies. For millions of Pakistanis, the Riyal’s steady value remains a financial lifeline, reinforcing its role in sustaining Pakistan’s economic stability.
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