Islamabad, Mar 1: The Saudi Riyal (SAR) witnessed a slight drop of one paisa against the Pakistani Rupee (PKR) in the open market. As of Saturday, March 1, 2025, the exchange rate for 1 SAR stands at Rs74.57. Similarly, the selling price has also declined, with the Riyal being traded at Rs75.09 across different exchange companies in Pakistan.
Saudi Riyal Overview
The Saudi Riyal (SAR) is the official currency of Saudi Arabia and is commonly abbreviated as SAR or SR. It is further divided into 100 halalas. Given the current exchange rate, 1,000 Saudi Riyals can be converted into approximately Rs74,570 in Pakistani currency.
Impact of Remittances from Saudi Arabia
Saudi Arabia hosts a large Pakistani expatriate community, with many individuals employed across various sectors. Their earnings contribute significantly to Pakistan’s foreign exchange reserves through remittances.
In January 2025, Pakistani workers in Saudi Arabia sent $728.3 million in remittances. While this figure reflects a 5.5% decrease compared to the previous month, it represents a 24% increase compared to January 2024, when the remittances stood at $587.4 million. These inflows are vital for stabilizing Pakistan’s economy and currency reserves.
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Strengthening Pakistan-Saudi Arabia Economic Relations
Pakistan and Saudi Arabia share strong economic and diplomatic ties. The Kingdom has consistently provided financial assistance to Pakistan during crucial economic periods. Recently, both nations agreed on a $1.2 billion deferred oil payment facility for an additional year, offering much-needed financial relief to Pakistan’s economy.
The Saudi Riyal’s exchange rate fluctuates due to various economic factors, including remittances and bilateral agreements. Despite minor declines, the continuous support from Saudi Arabia in the form of financial aid and remittances plays a significant role in Pakistan’s economic stability. Keeping track of exchange rate trends is essential for individuals involved in trade, remittances, and foreign exchange dealings.
