Forecasts for SAR to PKR
The exchange rate forecast for the Saudi Riyal (SAR) to Pakistani Rupee (PKR) suggests a stable outlook, with recent trading reflecting a steady performance in the current economic context. Currently, the SAR is trading at approximately 75.17 PKR, which is slightly above its three-month average. Analysts note that the rate has maintained stability, fluctuating within a narrow band of 1.9% between 73.94 and 75.37 PKR.
Economic factors influencing the SAR/PKR exchange rate include the riyal's fixed peg to the US dollar, which stands at 1 USD = 3.75 SAR. This peg provides a level of predictability for the riyal that is beneficial in the foreign exchange market. In contrast, the PKR is facing challenges, particularly influenced by geopolitical tensions and economic policies. The imposition of a 29% reciprocal tariff by the US on goods from Pakistan has further strained its economy, which could affect the demand for the PKR in the international market.
Moreover, remittance flows from Pakistani workers abroad have surged, defying earlier expectations of a decline due to the pandemic. However, this increase seems to be a short-term response as workers prepare for uncertain job prospects upon their return, particularly in the Middle East. This dynamic could lead to fluctuations in PKR liquidity, potentially impacting its exchange rate against the SAR.
Experts remain cautious about the overall performance of the PKR, as continued geopolitical tensions, particularly between Pakistan and India, may introduce further volatility. Recent military actions and the rhetoric surrounding these events could create an unstable environment for investors. Overall, while the SAR may remain relatively stable, the PKR's vulnerability to external economic pressures warrants close monitoring by stakeholders engaged in international transactions.
