The exchange rate between the Saudi Arabian Riyal (SAR) and the Pakistani Rupee (PKR) has recently settled at around 74.66 PKR per SAR, reflecting a stable trading range that has only varied by 1.7% from 74.57 to 75.81 PKR. This stability is significant as it remains just 0.6% below the three-month average of 75.08 PKR, suggesting a relatively consistent market sentiment towards the SAR amid the backdrop of broader economic trends.
Analysts highlight that the SAR is effectively pegged to the US dollar at 3.75 SAR to 1 USD, a factor that provides a level of predictability given the dollar's global status. However, the Pakistani Rupee faces multiple pressures that could influence its relative value against the riyal. Geopolitical tensions and recent border closures have contributed to a 12% depreciation of the PKR against the USD since January 2025, and forecasts suggest further declines may bring the PKR down to 100 PKR per USD by the end of the year.
Efforts by the State Bank of Pakistan to bolster the PKR through significant dollar purchases have created artificial demand, but challenges persist. The economic landscape is complicated by elevated inflation rates and ongoing trade deficits, despite record remittance inflows providing some relief. Analysts point out that the success of IMF-backed reforms aimed at fiscal stabilization will be crucial for the PKR's strength going forward.
In summary, while the SAR to PKR exchange rate remains stable for now, analysts caution that ongoing geopolitical and economic developments in Pakistan could lead to increased volatility. Market participants should remain attentive to these factors, as they could significantly influence future exchange rate movements between the SAR and PKR.
