The exchange rate between the Saudi Riyal (SAR) and the Pakistani Rupee (PKR) currently shows stability, with SAR to PKR trading at approximately 75.34, reflecting a narrow range of 1.6% over the past three months. Analysts observe that this rate is consistent with its recent averages, suggesting a balanced position amid various influencing factors.
The long-term outlook for the PKR remains mixed, primarily due to geopolitical tensions which have led to a significant depreciation of the currency since the start of 2025. Analysts predict that the PKR may weaken further, potentially reaching 100 PKR per USD by year-end, particularly as challenges from reduced remittances and increased trade deficits persist.
However, there are contrasting influences that offer some support for the PKR. A notable surge in remittances, which reached $38.3 billion—an increase of over 26%—has been beneficial, enhancing the country’s foreign exchange reserves. This positive development has contributed to a short-term appreciation of the PKR, as suggested by recent market sentiment following a staff-level agreement with the International Monetary Fund (IMF).
Market analysts point out that while interventions by the State Bank of Pakistan—such as purchasing $9 billion from interbank markets—have temporarily bolstered the PKR, these measures are viewed as artificial in nature and may not be sustainable in the long run. The inherent weakness in the economic fundamentals could pose risks for the PKR.
In summary, while the SAR maintains stability against the PKR in the short term, substantial pressures on the PKR stemming from geopolitical tensions and economic policies indicate a cautious outlook for the latter's performance in upcoming months. As these dynamics evolve, both individuals and businesses engaged in international transactions will benefit from close monitoring of these developments.
