Karachi, February 28, 2026: The Saudi Riyal (SAR) weakened against the Pakistani Rupee (PKR) on Saturday following the escalation of tensions in the Middle East triggered by recent attacks between Israel and Iran. Analysts said the deteriorating security situation in the region is directly impacting currency markets and may influence remittance flows to Pakistan.
According to the Exchange Companies Association of Pakistan (ECAP), the buying and selling rates of the Saudi Riyal dropped slightly to Rs74.76 and Rs75.27, compared to the previous day’s closing of Rs74.78 and Rs75.35 in the open market. Although the decline appears modest, it reflects investor caution amid growing geopolitical uncertainty.
Saudi Arabia is home to millions of Pakistani expatriates, including workers and entrepreneurs who contribute significantly to remittance inflows. Any prolonged instability in the region could reduce the volume of remittances and put additional pressure on the PKR-SAR exchange rate.
The recent escalation began on February 28, when Israel launched US-supported attacks on Iranian targets, prompting a swift and strong retaliatory response from Tehran. Reports suggest that loud explosions were even heard in Riyadh, further alarming residents and financial markets.
Market analysts warn that the PKR-SAR rate may remain volatile in the coming days as the Middle East situation evolves. Businesses and expatriates are advised to closely monitor developments, while financial institutions prepare for possible fluctuations in the currency market.