On February 5, 2025, the exchange rate for the Saudi Riyal (SAR) against the Pakistani Rupee (PKR) was recorded at Rs 74.13 for buying and Rs 74.67 for selling in the open market. These rates were updated at 12:05 AM Pakistan Standard Time (PST) and are subject to frequent fluctuations driven by market dynamics, including supply and demand for foreign currencies.
The buying rate of Rs 74.13 per Saudi Riyal reflects the price at which banks and exchange companies acquire the currency from customers, while the selling rate of Rs 74.67 indicates the price at which they sell it to buyers. The spread between these two rates is a common feature in currency markets and is influenced by a variety of factors, including global financial trends, trade balances, and remittance inflows.
For Pakistan, remittances from its expatriate workforce in Saudi Arabia are a critical component of the country’s foreign exchange reserves, and any changes in the flow of these funds can have a direct impact on the SAR/PKR exchange rate. In recent years, Saudi Arabia has been a significant source of remittance for Pakistan, which has further amplified the importance of the Saudi Riyal in the local currency market.
One of the key factors influencing the exchange rate is the seasonal demand for the Saudi Riyal, which typically rises during the Hajj and Umrah pilgrimage seasons. During these periods, Pakistanis traveling to Saudi Arabia for religious purposes tend to purchase larger amounts of the currency, leading to temporary upward pressure on its value relative to the Pakistani Rupee. This seasonal surge in demand can cause short-term appreciation in the Saudi Riyal against the PKR, even if other economic indicators remain constant.
Aside from seasonal factors, the exchange rate for the SAR/PKR pair is also shaped by broader economic conditions in both countries. For instance, changes in global oil prices can have a significant effect on the Saudi Riyal, as the Kingdom’s economy heavily relies on oil exports. Fluctuations in the global price of oil can thus impact the value of the Riyal, and in turn, influence its exchange rate against the Pakistani Rupee.
In addition to global factors, local economic policies and conditions in Pakistan also play a critical role in determining exchange rate movements. Pakistan’s inflation rates, trade balances, and foreign exchange reserves all factor into the strength of the Pakistani Rupee relative to the Riyal. For example, if inflation in Pakistan rises significantly, the value of the Rupee may weaken against other currencies, including the Saudi Riyal. Conversely, a stable or improving economic outlook could support the Rupee and help mitigate fluctuations in exchange rates.
Another key factor impacting the SAR/PKR exchange rate is the state of Pakistan’s foreign exchange reserves. When reserves are low or depleting, the central bank may intervene in the currency market to stabilize the Rupee by either selling foreign currency reserves or adjusting interest rates. This type of intervention can influence the supply and demand for currencies like the Saudi Riyal and may lead to temporary shifts in exchange rates.
The dynamics surrounding the SAR/PKR exchange rate are complex and influenced by a variety of interconnected factors. As Pakistan continues to rely on remittances and trade with Saudi Arabia, fluctuations in the exchange rate are inevitable. However, understanding the drivers behind these fluctuations, including seasonal demands, global oil prices, and local economic policies, can provide valuable insights for businesses, investors, and individuals engaged in cross-border transactions.
Overall, the Saudi Riyal to Pakistani Rupee exchange rate is subject to a combination of short-term market forces and long-term economic trends, both of which will continue to shape its trajectory in the coming months. Currency market participants should closely monitor these dynamics to make informed decisions when dealing with the SAR/PKR exchange rate.