Karachi, May 07, 2025 – The UAE Dirham (AED) maintained its stability against the Pakistani Rupee (PKR) today, trading at 76.55 PKR in the open market, according to the latest updates from currency exchange markets. This consistency reflects a period of relative calm in the AED-PKR exchange rate, driven by steady remittance inflows and balanced economic dynamics between Pakistan and the UAE.
Valuation Process of AED-PKR Exchange Rate
The exchange rate between the UAE Dirham and Pakistani Rupee is determined by a combination of market forces and central bank policies. The AED is pegged to the US Dollar at a fixed rate of approximately 3.67 AED to 1 USD, a policy enforced by the Central Bank of the UAE since 1997. This peg ensures the Dirham’s stability in global markets, as its value moves in tandem with the US Dollar, backed by the UAE’s robust oil-driven economy and diversified investments.
1 UAE Dirham= 76.55 Pakistani Rupees
In contrast, the PKR operates under a managed float system, where its value is influenced by supply and demand in the foreign exchange market, with periodic interventions by the State Bank of Pakistan to stabilize fluctuations. Key factors affecting the PKR’s valuation include Pakistan’s foreign exchange reserves, trade balances, inflation rates, and remittance inflows, particularly from the UAE, which saw $3.1 billion in remittances in February 2025 alone.
The AED-PKR exchange rate is calculated daily based on the interbank market rates and open market transactions. Exchange companies and banks set buying and selling rates, with today’s figures showing a buying rate of 76.55 PKR and a selling rate of approximately 77.25 PKR, reflecting a slight premium for sellers. These rates are updated frequently, often at 8:00 AM Pakistan Standard Time, and can fluctuate throughout the day based on market conditions.
Impact of Stability
The stability of the AED at 76.55 PKR has significant implications for both Pakistan and its expatriate community in the UAE. For the over two million Pakistani expatriates residing in the UAE, a stable exchange rate ensures predictable remittance values, enhancing their ability to support families and investments in Pakistan. The consistent rate also benefits businesses engaged in trade between the two nations, particularly in sectors like textiles, food, and construction materials, by reducing currency risk.
For Pakistan’s economy, the steady AED-PKR rate supports remittance inflows, a critical component of the country’s foreign exchange reserves. Analysts attribute this stability to balanced trade activity, improved forex reserves, and reduced speculative activity in the currency market. The UAE remains one of Pakistan’s most vital financial corridors, with remittances playing a pivotal role in stabilizing the PKR against global currencies.
However, the PKR’s managed float system makes it susceptible to domestic pressures such as inflation and trade deficits. Currency analysts suggest that while the AED-PKR rate is stable today, traders and investors should monitor global oil prices and geopolitical events, which could influence the US Dollar and, by extension, the Dirham’s value.
Introduction to AED and PKR
The UAE Dirham (AED), introduced in 1973, is the official currency of the United Arab Emirates, replacing the Qatar and Dubai Riyal. Issued by the Central Bank of the UAE, it is subdivided into 100 fils and abbreviated as “د.إ” or “Dhs.” The Dirham’s peg to the US Dollar ensures its stability, bolstered by the UAE’s oil-rich economy, fiscal discipline, and status as a global trade hub. It is used across all seven emirates, including Dubai and Abu Dhabi, and is widely accepted in regional tourist areas.
The Pakistani Rupee (PKR), in circulation since Pakistan’s independence in 1947, is the official currency of Pakistan, subdivided into 100 paise. Abbreviated as “₨” or “Rs,” it is issued by the State Bank of Pakistan. The PKR’s value is shaped by a managed float system, making it more volatile than the AED due to domestic economic factors like inflation, trade deficits, and foreign exchange reserves. The currency plays a central role in Pakistan’s economy, with remittances from expatriates, including those in the UAE, significantly impacting its stability.
The UAE Dirham’s stability at 76.55 PKR today underscores the strong economic ties between the UAE and Pakistan, driven by remittances and trade. While the AED benefits from its US Dollar peg, the PKR’s value reflects Pakistan’s broader economic dynamics. This steady exchange rate fosters confidence among expatriates and businesses, but vigilance is advised as global and local factors could influence future trends. For the latest AED-PKR rates, individuals are encouraged to consult banks or licensed exchange companies.
