February 7, 2025 – The exchange rates for the Saudi Riyal (SAR), UAE Dirham (AED), and Qatari Riyal (QAR) remained relatively stable against the Pakistani Rupee (PKR) in today’s trading session, signaling a steady economic environment. This consistency in the exchange rates has offered reassurance to those engaged in cross-border trade, remittances, and investments, particularly in the Middle East region, which has significant economic ties to Pakistan.
As of today, exchange companies quoted the Saudi Riyal at 74.21 for buying and 74.75 for selling. Meanwhile, the UAE Dirham’s rates stood at a buying price of PKR 75.96 and a selling price of PKR 76.50. The Qatari Riyal remained in a similar range, with buying and selling rates at PKR 76.50 and PKR 77.11, respectively.
These slight movements, which are consistent with the trends observed over the past few sessions, reflect a largely stable exchange rate environment for the Pakistani Rupee. The stable rates are indicative of a relatively stable economic backdrop in Pakistan, supporting the confidence of investors and traders, especially in terms of remittances and business transactions involving the Middle East.
Analyzing the trends over the past day, week, and month, the exchange rates have shown only minor fluctuations, with the Saudi Riyal, UAE Dirham, and Qatari Riyal moving marginally. The one-day change on February 7, 2025, showed no variation in the buying and selling prices of the SAR, AED, and QAR. On a monthly basis, however, the exchange rates for the Saudi Riyal and the UAE Dirham saw a slight decrease, with the former falling by 0.26% and the latter by 0.33%. The Qatari Riyal also experienced a 0.39% drop in its exchange rate in the same period.
For the year-to-date (CYTD) performance, all three currencies showed similar trends, with the Saudi Riyal, UAE Dirham, and Qatari Riyal each declining slightly by around 0.5%. These fluctuations are minor compared to the volatility observed in other global currencies, reflecting the relatively stable foreign exchange environment in Pakistan.
The continued stability in exchange rates is particularly important for Pakistan’s large diaspora in the Middle East. With approximately 11.5 million Pakistanis living in the region (as of November 2024), the exchange rates of SAR and AED hold particular significance for remittances and business transactions. Remittances from the Middle East play a crucial role in supporting Pakistan’s economy, and the exchange rates directly impact the value of these transfers.
In December 2024, remittances from the Middle East contributed nearly half of the total foreign inflows into Pakistan, accounting for approximately 46% of total remittances. Saudi Arabia remained the largest source of remittances, with inflows reaching $770.6 million, marking a notable 33.4% year-on-year increase. Similarly, the UAE emerged as the second-largest contributor, with remittances from the region totaling $631 million, a significant 50.7% increase compared to the previous year.
These remittance inflows are a critical source of support for Pakistan’s economy, particularly as they help stabilize the foreign exchange reserves and support the local consumer market. The Middle East has not only been a hub for remittances but also an important region for Pakistan’s energy imports, further strengthening the economic ties between Pakistan and the Gulf countries.
The relatively stable exchange rates for the Saudi Riyal, UAE Dirham, and Qatari Riyal against the Pakistani Rupee suggest that the country’s currency market remains resilient despite ongoing economic challenges. Looking forward, these stable rates could continue to bolster investor confidence and maintain the steady flow of remittances from the Middle East, which remains a vital lifeline for Pakistan’s economy.