The Pakistani rupee (PKR) marginally improves against major Gulf currencies. Minor gains against the SAR, AED, and QAR, local exchange companies announced the updated rates.
The buying rate for the Saudi Riyal in the latest session was PKR 73.52, whereas the selling rate was PKR 74.14 with a marginal depreciation of 0.08%. Similarly, AED also went down by 0.05% in comparison to the rupee as it is trading at PKR 75.26 on the buying side and PKR 75.97 on the selling side. The Qatari Riyal also depreciated by 0.09%. Now, it is fetching on the buying side at PKR 75.69 and on the selling side at PKR 76.58.
Such fluctuations in currency attract much attention, particularly from Pakistan’s huge expatriate community in the Middle East, as inflows of remittances are extremely important to Pakistan’s economy. An estimated 4.5 million Pakistanis working in the Gulf region, whether doctors, business people, or laborers, are waiting to soften the exchange rate when sending back their earnings. Pakistan So far, the first four months of the fiscal year 2025 have seen an inflow of 54% remittances, the majority still going to Saudi Arabia and the UAE which account for 25% and 20%, respectively.
The exchange rates also influence the costs of importing energy to Pakistan since one of the main energy suppliers to Pakistan is the Gulf states. Open market rates for SAR on 9 November 2024 are as follows: buy at PKR 73.65 and sell at PKR 74.20. This implies that 1,000 Saudi Riyals will be PKR 73,800.
However, the steady appreciation of the PKR against GCC currencies can sustain the upbeat factors in family purchasing power through remittances while also perhaps lowering the costs of imports.
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