Saudi Riyal to Pakistani Rupee Rate; June 13, 2025

Karachi, June 13, 2025 – The Saudi Riyal (SAR) is trading at Rs75.34 against the Pakistani Rupee (PKR) in the open market today, reflecting a marginal increase from recent weeks, according to local exchange companies. This exchange rate, driven by market forces and economic dynamics, holds significant implications for Pakistan’s economy and its expatriate community in Saudi Arabia.

Valuation Process of SAR to PKR

The Saudi Riyal’s value against the Pakistani Rupee is determined primarily in Pakistan’s open market, where supply and demand dynamics dictate the exchange rate. The Riyal is pegged to the U.S. Dollar at a fixed rate of 3.75 SAR to 1 USD, a policy maintained by the Saudi Central Bank since 1986. This peg indirectly stabilizes the Riyal’s value against other currencies, including the PKR. In Pakistan, several factors influence the SAR-PKR exchange rate:

Remittance Inflows: Remittances from approximately 2.5 million Pakistani expatriates working in Saudi Arabia form a substantial portion of Pakistan’s foreign exchange reserves. These inflows increase the supply of Saudi Riyals in the market, helping to stabilize the exchange rate.
Trade Balance: The economic relationship between Pakistan and Saudi Arabia, including trade and investment, shapes the demand for SAR. Balanced trade reduces exchange rate volatility.
Forex Reserves and Monetary Policy: The State Bank of Pakistan occasionally intervenes in the currency market to maintain stability, supported by adequate foreign exchange reserves.
Travel and Pilgrimage: Demand for Saudi Riyals spikes during Hajj and Umrah seasons, as Pakistani pilgrims require SAR for religious travel, temporarily strengthening the Riyal against the PKR.

The current rate of Rs75.34 reflects relative stability, aligning with forecasts predicting a range of Rs74.25 to Rs76.05 for 2025.

Why Pakistanis Buy Saudi Riyal

Pakistanis purchase Saudi Riyals for several reasons, driven by economic, cultural, and religious ties with Saudi Arabia:

Religious Pilgrimage: Each year, millions of Pakistanis travel to Saudi Arabia for Hajj and Umrah, requiring SAR for expenses such as accommodation, transportation, and food.
Remittances and Currency Exchange: Pakistani expatriates in Saudi Arabia send earnings in SAR back home, which are then converted to PKR by families or exchange companies.
Trade and Business: Pakistani businesses engaged in trade with Saudi Arabia, particularly in sectors like textiles and food exports, require SAR for transactions.
Investment and Savings: Some Pakistanis view SAR as a stable currency due to its USD peg, using it as a hedge against PKR depreciation amid Pakistan’s economic challenges.

Impact on Pakistani Expatriates

The SAR-PKR exchange rate of Rs75.34 has significant implications for Pakistani expatriates in Saudi Arabia and their families in Pakistan:

Increased Remittance Value: A stronger Riyal means expatriates’ remittances convert to more PKR, boosting the purchasing power of their families in Pakistan. This supports household expenses, education, and local economies, particularly in rural areas.
Cost of Living for Pilgrims: For Pakistanis planning Hajj or Umrah, a higher SAR value increases travel costs, as more PKR is needed to obtain the required Riyals. This may strain budgets for low-income pilgrims.
Economic Stability: Stable exchange rates reduce uncertainty for expatriates and their families, facilitating financial planning and cross-border transactions.
Risk of External Shocks: While the Riyal’s peg to the USD provides stability, global oil price volatility or U.S. monetary policy changes could indirectly affect the SAR-PKR rate, impacting expatriates’ earnings in PKR terms.

The partnership between Pakistan and Saudi Arabia, underscored by financial assistance like Saudi Arabia’s recent extension of a $3 billion deposit to Pakistan, further strengthens these economic ties.

Introduction to Saudi Riyal and Pakistani Rupee

Saudi Riyal (SAR): The Saudi Riyal, abbreviated as SAR or SR, is the official currency of Saudi Arabia, subdivided into 100 halalas. Issued by the Saudi Central Bank, it has been pegged to the U.S. Dollar since 1986, ensuring exchange rate stability. The Riyal, a symbol of Saudi Arabia’s economic strength, has evolved from bimetallic coins to modern fiat currency since the kingdom’s establishment in 1932.

Pakistani Rupee (PKR): The Pakistani Rupee, symbolized as PKR or Rs, is Pakistan’s official currency, subdivided into 100 paisa. Regulated by the State Bank of Pakistan under a managed float regime, its value is influenced by market forces, remittances, and trade dynamics. Introduced in 1948, the Rupee has faced challenges due to Pakistan’s economic instability but remains a critical medium for domestic and international transactions.