KARACHI/DUBAI: As of April 21, 2025, the exchange rate for the UAE Dirham (AED) to the Pakistani Rupee (PKR) remains stable at 76.40 PKR in the open market.
This consistency indicates ongoing variations in the foreign exchange market, influenced by domestic economic factors and global trade dynamics, offering favorable rates for Pakistani expatriates sending money from the UAE.
1 UAE DIRHAM = 76.40 PAKISTANI RUPEES.
The AED-PKR exchange rate is affected by various elements. The UAE Dirham, which is pegged to the US Dollar at roughly 3.67 AED per USD, benefits from the UAE’s strong oil-driven economy and effective fiscal management.
This peg ensures that the value of the Dirham is aligned with the global performance of the US Dollar. Conversely, the Pakistani Rupee functions under a managed float regime, with its value swayed by market demand, State Bank of Pakistan intervention, remittance inflows, trade deficits, and local inflation. The current rate of 76.40 PKR per AED indicates a stronger Dirham, likely attributed to increasing remittances or better economic conditions in Pakistan.
Analysts emphasize the UAE’s considerable economic connections with Pakistan, as millions of Pakistani workers in the UAE contribute significant remittances—approximately $3.1 billion in February 2025, according to State Bank data. These remittance flows enhance demand for the Dirham in Pakistan, affecting its exchange rate.
The UAE Dirham, introduced in 1973 to replace the Qatar and Dubai Riyal, serves as the official currency of the UAE (including Dubai and Abu Dhabi) and is known as AED.
The Pakistani Rupee, abbreviated as PKR or “Rs,” has been the currency of Pakistan since 1947. While the strength of the Dirham reflects the UAE’s prosperous economy, the value of the Rupee is indicative of Pakistan’s broader economic challenges and opportunities. The interaction between these currencies underscores the strong economic ties between the two countries.
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