On March 6, 2026, the Saudi Riyal (SAR) maintained its position at Rs74.42 against the Pakistani Rupee (PKR) in Karachi’s open currency market. Currency traders observed the selling price hovering near Rs74.99, reflecting a continuation of the narrow and low-volatility trading range that has characterized this currency pair since early January of this year. This marks over nine consecutive weeks of remarkably steady exchange rates, a trend that underscores the Riyal’s relative stability amid fluctuating economic conditions.
This current exchange rate remains comfortably below the mid-2025 peak of Rs76.03, recorded in July, and is close to the softer levels last seen consistently in late October 2025. The sustained stability of the Riyal against the Rupee is particularly significant given the currency’s vital role in the Pakistani economy. Millions of Pakistani families rely heavily on remittances sent from Saudi Arabia, which continues to be the largest source of monthly income for overseas Pakistani workers.
Pakistani expatriates employed across various sectors in Saudi Arabia—including construction, healthcare, hospitality, and domestic services—keep the remittance flow steady and dependable. Saudi Arabia remains Pakistan’s top remittance-origin country, having contributed a substantial $913.3 million in May 2025 alone, the highest single-country inflow recorded. From July 2024 through May 2025, total remittances surged to $34.9 billion, marking a robust 28.8% increase compared to the previous year. These funds are crucial for many households, helping cover essential expenses such as school fees, medical bills, groceries, and utility payments.
At the current exchange rate of Rs74.42 per Saudi Riyal, every 1,000 Riyals sent home translates to Rs74,420. However, this figure represents a noticeable decline compared to earlier levels in 2025, meaning that families dependent on these remittances are gradually experiencing a reduction in their real purchasing power. This erosion is becoming more pronounced as inflation persists, squeezing household budgets despite the steady inflow of foreign currency.
The economic impact of the Riyal trading in the Rs74.40 to Rs74.50 range is multifaceted. On one hand, families receiving remittances face a slow but steady decrease in the value of the funds they receive, which affects their ability to meet daily needs. On the other hand, importers of Saudi crude oil, refined petroleum products, and petrochemicals benefit from lower rupee-denominated costs, providing some relief to Pakistan’s trade balance. Additionally, these steady remittance inflows help bolster the country’s foreign exchange reserves, which stood above $11 billion by late 2024. This reserve cushion enables the State Bank of Pakistan to better manage inflationary pressures and meet external debt obligations.
Moreover, the relatively weaker Rupee supports Pakistan’s export sectors by keeping products like rice, textiles, leather goods, surgical instruments, and fruits competitively priced in international markets. This dynamic is crucial for sustaining export earnings and maintaining economic stability in the face of global uncertainties.
To provide context, the Saudi Riyal is subdivided into 100 halalas and is tightly pegged to the US dollar at approximately 3.75 Riyals per dollar, with the Saudi Arabian Monetary Authority (SAMA) ensuring maximum currency stability. Conversely, the Pakistani Rupee operates under a managed float system overseen by the State Bank of Pakistan. Its value is influenced by multiple factors, including inflation rates, trade balances, and most significantly, the volume of remittances flowing into the country.
The SAR-PKR exchange rate has now remained within this unusually tight band for over nine weeks, a period marked by robust outflows of Pakistani workers abroad and seasonal demand drivers such as Hajj and Umrah pilgrimages, as well as fiscal year-end bonuses. These factors collectively sustain the remittance corridor as one of Pakistan’s most reliable economic lifelines. Any significant shift in this exchange rate would likely require changes in global dollar strength, fluctuations in oil prices, or alterations in Pakistan’s foreign currency reserves.
For the time being, the Saudi Riyal’s steady rate of Rs74.42 continues to act as a quiet yet indispensable pillar supporting millions of Pakistani households. However, with inflationary pressures mounting, every fractional decline in the exchange rate is increasingly felt by families who depend on these remittances to meet their everyday needs.
