Recent forecasts and updates on the Saudi Riyal (SAR) to Pakistani Rupee (PKR) exchange rate indicate a period of relative stability with a slight upward trend. The SAR is officially pegged to the IMF's Special Drawing Rights (SDRs) and is effectively fixed at 3.75 riyals per U.S. dollar. This stable peg supports a consistent valuation against the PKR, which currently trades at 75.64, only 0.7% above its three-month average of 75.11. Analysts note that this stability reflects a constrained range of 2.7% over the past three months, signaling limited volatility.
Various factors are influencing the PKR. The recent imposition of a 29% reciprocal tariff by the U.S. has put pressure on Pakistan's economy and could negatively impact the PKR if the trade situation remains tense. Simultaneously, remittances from migrant workers, which had previously bolstered the PKR, show signs of slowing as workers anticipate returning home due to tough job markets, particularly in the Middle East. This shift may lead to reduced demand for the PKR in the near term.
Geopolitical tensions also weigh heavily on the PKR's outlook. The recent escalation in conflict with India following airstrikes has elevated regional insecurity, creating an uncertain environment that could hinder foreign investment and economic confidence. Economists suggest that any further deterioration in relations could exacerbate the PKR's struggles against the SAR.
Overall, while the SAR remains stable due to its fixed exchange rate regime, the outlook for the PKR is cautiously pessimistic due to external trade pressures and rising geopolitical tensions. Businesses and individuals engaged in international transactions should monitor these developments closely, as any shifts in these dynamics could prompt significant changes in the SAR/PKR exchange rate going forward.