Saudi Riyal to Pakistani Rupee Exchange Rate Strengthens
The increased remittances from Saudi Arabia are set to positively impact Pakistan's economy, with the Saudi Riyal to Pakistani rupee exchange rate playing a pivotal role in determining the value of these remittances, ultimately influencing the country's foreign exchange reserves and economic stability.
The Saudi Riyal to Pakistani rupee exchange rate saw a significant increase on Tuesday, April 22, 2025, with the buying rate reaching Rs74.85 and the selling rate at Rs75.39, marking a notable rise from the previous rate, largely attributed to the substantial remittances sent by Pakistani workers from Saudi Arabia.
Pakistan's workers' remittances have reached an unprecedented high of $4.1 billion in March 2025, with a considerable $987 million coming from Saudi Arabia alone, representing a 40% increase from the same period in 2024. This surge in remittances is a testament to the strong economic ties between the two nations and the significant role Saudi Arabia plays as the largest source of remittances for Pakistan.
The exchange rate of the Saudi Riyal (SAR) to the Pakistani rupee (PKR) has been relatively stable, with 1 SAR equivalent to Rs74.85. On April 21, 2025, the buying and selling rates were recorded at Rs74.81 and Rs75.35, respectively, indicating a steady market. The remittances from Saudi Arabia, which stood at $744.4 million in February 2025, showed a 2.21% increase from January and a 37.88% jump from February 2024, underlining the growing contribution of Saudi Arabia to Pakistan's foreign exchange reserves.
The State Bank of Pakistan's foreign exchange reserves, which stood at $15.58 billion as of March 28, 2025, with the bank holding $10.68 billion, are expected to benefit from the continued influx of remittances. This development is crucial for Pakistan's economic stability and highlights the importance of international remittances in bolstering the country's financial reserves.