Saudi Riyal Steady Against PKR, Remittances Boost Reserves
The stable Saudi Riyal to PKR rate and significant remittances from Saudi Arabia have helped boost Pakistan's foreign exchange reserves, providing a much-needed injection of foreign currency into the economy, with the State Bank of Pakistan holding a substantial portion of these reserves.
The Saudi Riyal exchange rate remained stable against the Pakistani Rupee, with a buying rate of Rs74.94 and a selling rate of Rs75.48, as Pakistan's foreign reserves stood at $15.58 billion as of March 28, 2025.
The stability in the exchange market is a welcome sign for Pakistan's economy, which has been boosted by significant remittances from Saudi Arabia. In February 2025, Pakistani workers sent $744.4 million back home, marking a 2.21% increase from January and a 37.88% increase from February 2024.
Saudi Arabia is the largest source of remittances for Pakistan, and this influx of foreign currency has contributed substantially to the country's foreign exchange reserves. As of March 28, 2025, the State Bank of Pakistan held $10.68 billion, while the total liquid foreign reserves stood at $15.58 billion.
The steady exchange rate and increased remittances are positive indicators for Pakistan's economy, which has been working to stabilize its foreign reserves and promote economic growth. The country's reliance on remittances from Saudi Arabia and other countries highlights the importance of maintaining strong economic ties with these nations.