Saudi Arabia and Pakistan share a strong, long-term partnership built on cooperation in areas like trade, energy, defense, and culture. This relationship plays a vital role in supporting Pakistan’s economy.
Labor Migration and Remittances
Saudi Arabia has been a top destination for Pakistani workers seeking better job opportunities. Many Pakistanis work in sectors like construction, healthcare, hospitality, and retail in the Kingdom. These workers are a major part of Pakistan’s economic backbone, sending regular remittances to their families back home.
Remittances from Saudi Arabia form a significant part of Pakistan’s foreign exchange earnings. They help improve the living standards of many families and contribute to national economic growth. Saudi Arabia consistently ranks as the largest source of remittances for Pakistan, with billions of dollars sent annually. This steady flow of funds helps reduce poverty and boost household welfare.
Exchange Rate and Economic Impact
The Saudi Riyal plays a crucial role in financial transactions between the two countries. As of November 14, the Riyal stands at Rs. 73.65 for buying and Rs. 74.2 for selling in Pakistan’s open market. This stable exchange rate benefits Pakistani workers in Saudi Arabia who frequently convert their earnings to Pakistani Rupees (PKR).
A steady exchange rate ensures that the value of these remittances remains intact, safeguarding workers’ income from market volatility or fraudulent practices. For millions of Pakistani families, a stable Riyal-to-PKR rate is essential to managing daily expenses and securing a better future.
Bilateral Cooperation and Strategic Importance
Saudi Arabia plays a key role in Pakistan’s foreign policy. Both countries work together on regional security issues, including the Middle East, Afghanistan, and global efforts to combat extremism. Saudi Arabia has supported Pakistan through loans, aid packages, and joint defense projects, strengthening their alliance.
Cultural and religious ties further cement their relationship. Saudi Arabia is home to Mecca and Medina, Islam’s holiest cities, and welcomes thousands of Pakistani pilgrims every year for Hajj and Umrah. This shared religious connection reinforces the strong bond between the two nations, united by Islamic values and traditions.
