On February 26, 2026, the Saudi Riyal (SAR) remained stable against the Pakistani Rupee (PKR) in Karachi’s open currency market, with the buying rate recorded at Rs74.51. Currency dealers also quoted the selling price close to Rs75.08, reflecting a narrow trading band that has persisted since early January this year. This steady range indicates a period of relative calm in the SAR-PKR exchange rate after months of fluctuations.
It is important to note that today’s exchange rate continues to stay well below the mid-2025 peak, when the Riyal reached Rs76.03 in July. Conversely, the current figures are hovering near the softer levels last observed consistently in late October 2025. This suggests that the currency pair is maintaining a balanced position, neither surging nor falling sharply, which has significant implications for various sectors of Pakistan’s economy.
The Saudi Riyal remains a vital financial lifeline for millions of Pakistani families who rely heavily on remittances sent by workers employed in Saudi Arabia. These expatriates, engaged across diverse sectors such as construction, healthcare, hospitality, and domestic services, keep the remittance flow steady and dependable. Saudi Arabia continues to hold the top spot as the largest single-country source of remittances to Pakistan, contributing an impressive $913.3 million in May 2025 alone. This figure underscores the critical role Saudi remittances play in Pakistan’s foreign exchange earnings.
Between July 2024 and May 2025, cumulative remittances from Saudi Arabia reached a substantial $34.9 billion, marking a robust 28.8% increase compared to the previous year. At the current exchange rate of Rs74.51 per Riyal, every 1,000 Riyals sent home translates into Rs74,510, a significant amount that supports essential household expenses. Despite being somewhat lower than the Rs76+ levels seen earlier in 2025, this rate still provides crucial financial backing for families covering costs such as school fees, medical treatments, groceries, utility bills, and other daily necessities.
The economic impact of the Riyal trading around Rs74.50 is multifaceted. On one hand, families dependent on remittances face a gradual erosion in their real purchasing power due to ongoing inflationary pressures within Pakistan. On the other hand, importers of Saudi crude oil, refined petroleum products, and petrochemicals benefit from relatively lower rupee-denominated costs, which offers some relief to Pakistan’s trade balance. This dynamic helps ease external pressures and contributes to a more manageable economic environment.
Moreover, Pakistan’s foreign exchange reserves, which stood above $11 billion as of late 2024, continue to receive steady support from these inflows. This financial cushion enables the State Bank of Pakistan to better manage inflationary trends and meet external debt obligations. Additionally, the relatively weaker Pakistani Rupee enhances the competitiveness of key export sectors such as rice, textiles, leather goods, surgical instruments, and fresh fruits in international markets, thus supporting export-led growth.
To provide some context, the Saudi Riyal is subdivided into 100 halalas and is tightly pegged to the US dollar at approximately 3.75 Riyals per dollar. This peg is managed by the Saudi Arabian Monetary Authority (SAMA) to ensure maximum currency stability. In contrast, the Pakistani Rupee operates under a managed float system overseen by the State Bank of Pakistan. The Rupee’s value is influenced by several factors, including inflation rates, trade balances, and most critically, remittance volumes from overseas Pakistanis.
Currently, the SAR-PKR exchange rate remains confined within a relatively narrow band. With the continuous outflow of Pakistani workers to Saudi Arabia and seasonal factors such as Hajj and Umrah pilgrimages, as well as fiscal year-end bonuses, demand for the Riyal is expected to stay strong. This steady demand keeps the remittance corridor one of the most reliable economic lifelines for Pakistan. Any significant deviation in the exchange rate would likely depend on shifts in global dollar strength, fluctuations in oil prices, or changes in Pakistan’s foreign currency reserves.
For the time being, the Saudi Riyal trading at Rs74.51 continues to play a quiet yet indispensable role in supporting millions of Pakistani households. Its stability not only helps families meet their everyday expenses but also contributes to broader economic stability in the country.
