Saudi Riyal to Pakistani Rupee Rate; June 19, 2025

The Saudi Riyal (SAR) after gaining a meagre rise against the Pakistani Rupee (PKR) in the open market on Thursday, June 19, 2025 was recorded at Rs75.57.

The selling rate of Saudi Riyal also moved up accordingly and settled at Rs76.12 after gaining eight paisas in open market.

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.

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.