KARACHI, March 12, 2026: The Saudi Riyal (SAR) experienced a modest recovery today in the open currency market, closing at Rs74.49 against the Pakistani Rupee (PKR). This marks a slight increase of 7 paisa from its recent low of Rs74.42, prominent currency traders operating in Karachi. Meanwhile, the selling price of the Riyal adjusted to approximately Rs75.06, reflecting cautious optimism among market participants.
This upward movement in the Riyal’s value is largely attributed to a broader “safe-haven” rally that has been bolstering the US Dollar, to which the Saudi Riyal remains firmly pegged. The ongoing escalation of hostilities between the US and Israel on one side and Iran on the other has heightened geopolitical uncertainty in the region. Recent missile interceptions over Saudi and UAE airspace have further intensified investor concerns, prompting a retreat from riskier emerging market currencies such as the Pakistani Rupee. As a result, the Riyal, benefiting from its dollar peg, has gained relative strength in comparison.
On the other hand, the Pakistani Rupee continues to face severe downward pressure amid these developments. The global price of Brent crude oil has surged beyond $110 per barrel, largely due to the closure of the strategically vital Strait of Hormuz. This disruption has significantly increased Pakistan’s import costs, placing additional strain on the country’s already fragile economy. In response, the government has reinforced its “War Austerity Plan,” which includes measures like mandatory work-from-home policies and a reduced four-day workweek aimed at conserving fuel and managing the energy crisis more effectively.
Adding to the Riyal’s resilience is Saudi Arabia’s substantial foreign exchange reserves, which act as a financial buffer against the volatility caused by regional instability. This economic strength allows Riyadh to maintain the Riyal’s stability at these elevated levels despite the ongoing geopolitical turmoil. However, for Pakistan, the current exchange rate of Rs74.49 per Saudi Riyal presents a mixed scenario. While families relying on remittances from Saudi Arabia benefit from increased purchasing power, the rising exchange rate simultaneously drives up the cost of essential goods and energy imports, exacerbating inflationary pressures within the country.
Looking ahead, as long as the maritime blockade in the Gulf remains unresolved and disruptions to energy supply chains persist, the Pakistani Rupee is expected to continue its downward trajectory. This trend could push the Riyal closer to the psychologically significant threshold of Rs75.00 in the near future, further complicating Pakistan’s economic challenges.
For quick reference, the Saudi Riyal is subdivided into 100 halala and is tightly pegged to the US Dollar at a rate of approximately 3.75 SAR to 1 USD. The Saudi Arabian Monetary Authority (SAMA) manages this peg to ensure maximum currency stability. In contrast, the Pakistani Rupee, denoted by the symbol ₨, operates under a managed float system overseen by the State Bank of Pakistan. Its value fluctuates based on factors such as inflation, trade balances, and notably, the volume of remittances received from overseas workers.
To illustrate the practical impact of the current exchange rate, a remittance of 500 SAR translates to Rs37,245, while a larger transfer of 1,000 SAR equals Rs74,490. These figures highlight the importance of the Riyal-PKR exchange rate for millions of Pakistani families dependent on funds sent from Saudi Arabia.
