Saudi Riyal Exchange Rate Affects Remittances
The increase in remittances from Saudi Arabia, coupled with the stable exchange rate of the Saudi Riyal, is expected to have a positive impact on Pakistan's economy, with potential benefits for the country's foreign exchange reserves and the livelihoods of families dependent on remittances from abroad.
The Saudi Riyal to PKR rate today stands at Rs74.72, with a slight gain against the Pakistani Rupee in the open market, and a selling rate of Rs75.12, as Pakistan receives a significant boost in remittances from Saudi Arabia, totaling $3.1 billion in February 2025.
This increase in remittances marks a 3.8% rise from January 2025 and a substantial 38.6% surge from February 2024, when the country received $2.25 billion. The stability in the Saudi Riyal exchange rate is crucial for the approximately 250,000 Pakistani expats living in Oman and the larger number of workers in Saudi Arabia, as it directly affects the value of their remittances back home.
The exchange rates of other currencies, such as the Omani Riyal and the Canadian Dollar, also remained significant, with the OMR to PKR rate unchanged at Rs 734.50 in the open market and the CAD to PKR rate standing at 199.25. However, the focus remains on the Saudi Riyal due to its substantial impact on Pakistan's economy through remittances.
The slight decline in the Saudi Riyal to PKR rate from previous values is being closely monitored, but the overall trend suggests a positive impact on Pakistan's economy, given the significant increase in remittances from Saudi Arabia. This trend is expected to continue, providing a much-needed boost to the country's foreign exchange reserves.