Saudi Riyal to Pakistani Rupee Rate; June 16, 2025

The Saudi Riyal (SAR) maintained its position against the Pakistani Rupee (PKR) in the open market on Monday, June 16, 2025, with the buying rate rising to Rs75.37.

The official currency of Saudi Arabia, denoted as Saudi Riyal or SAR, is divided into 100 halalas. Managed by the Saudi Central Bank, it has been pegged to the US Dollar since 1986, ensuring stability.

Evolving from bimetallic coins to modern currency since 1932, the Riyal reflects Saudi Arabia’s economic resilience.

The shift underscores ongoing dynamics in Pakistan’s foreign exchange market, driven by economic factors and the significant role of remittances from Saudi Arabia.

Valuation Mechanism of SAR to PKR

The exchange rate between the Saudi Riyal and Pakistani Rupee is determined primarily by supply and demand dynamics in the open market, where currency exchange dealers set rates based on real-time transactions.

The Saudi Riyal is pegged to the US Dollar (USD) at a fixed rate of 3.75 SAR to 1 USD, managed by the Saudi Central Bank. This peg indirectly influences the SAR-PKR rate, as fluctuations in the USD-PKR exchange rate ripple through to the Riyal. For instance, the US Dollar was reported trading at Rs282.9 (buying) and Rs285.30 (selling) on June 13, 2025, providing a benchmark for SAR’s valuation.

Additional factors influencing the SAR-PKR rate include:

Remittances: Pakistan received $34.9 billion in workers’ remittances from July 2024 to May 2025, with $913.3 million from Saudi Arabia in May alone, the highest among all countries. This high inflow strengthens demand for SAR, supporting its value against PKR.

Economic Conditions: Pakistan’s trade balances, inflation rates, and foreign exchange reserves, managed by the State Bank of Pakistan, impact the PKR’s strength. The PKR often faces volatility due to external debt obligations and trade dynamics.

Geopolitical and Market Sentiment: Regional stability and global economic trends, such as oil prices (given Saudi Arabia’s oil-driven economy), can cause short-term fluctuations in the SAR-PKR rate.

The State Bank of Pakistan may intervene to stabilize the PKR, but the open market largely reflects organic supply-demand shifts. Today’s slight increase in the SAR-PKR rate suggests a modest rise in demand for the Riyal, possibly linked to remittance inflows or seasonal factors like travel for Hajj or Umrah.

Effects on Pakistani Expatriates

The SAR-PKR exchange rate of Rs75.34 impacts Pakistani expatriates and their families significantly:

Higher Remittance Value: A stronger Riyal increases the PKR value of remittances, enhancing families’ purchasing power for essentials, education, and local economic activity, especially in rural regions.

Rising Pilgrimage Costs: A higher SAR rate raises the PKR cost of Hajj or Umrah, potentially burdening lower-income pilgrims.

Financial Predictability: Stable Saudi Riyal-PKR rates aid expatriates and families in planning finances and cross-border payments.

Vulnerability to Global Factors: The Riyal’s USD peg offers stability, but shifts in oil prices or US monetary policies could indirectly influence the SAR-PKR rate, affecting expatriates’ PKR earnings.

Strengthened by ties like Saudi Arabia’s $3 billion deposit extension to Pakistan, these economic links remain robust.