Islamabad/Dubai, August 20, 2025 – The UAE Dirham (AED) has dropped to 76.76 Pakistani Rupee (PKR) today at 4:37 PM PKT, down by 0.56 PKR from the last reported rate of 77.32 PKR on August 12, 2025, as confirmed by reliable financial sources tracking interbank and open market rates.
AED to PKR- Latest Rates
This decline follows a strong June, when the AED gained 0.81 PKR, rising from 76.44 PKR at the month’s start to 77.25 PKR by its close, with a peak of 77.6111 PKR on July 1, 2025. Despite today’s dip, the Dirham’s resilience reflects the United Arab Emirates’ smart economic strategies and its solid standing as a global financial hub.
Currency Basics: AED and PKR
The UAE Dirham (AED), the official currency of the United Arab Emirates since 1973, is tied to the US Dollar at a fixed rate of 3.6725 AED to 1 USD, managed by the Central Bank of the UAE. This peg keeps the AED steady, making it a trusted choice for trade and investment across the UAE’s seven emirates. The Pakistani Rupee (PKR), Pakistan’s currency since 1948, is a floating currency overseen by the State Bank of Pakistan, meaning it’s influenced by local economic conditions, global markets, and geopolitical events.
How This Affects Pakistan: Remittances and Imports
Today’s decrease in the AED-PKR exchange rate offers a bit of relief for Pakistani businesses importing from the UAE, lowering costs compared to the higher rate earlier this month. However, the Dirham’s overall strength, driven by June’s gains, continues to shape Pakistan’s economy. For the millions of Pakistanis working in the UAE, the still-strong Dirham boosts remittance values, which hit $717.2 million in June 2025, per State Bank of Pakistan data, making the UAE Pakistan’s second-largest remittance source after Saudi Arabia. This money supports families and fuels local economies in places like Punjab and Sindh. On the downside, the elevated exchange rate still makes UAE goods—think luxury items or everyday essentials—more expensive, challenging Pakistani businesses and consumers. The AED’s link to the US Dollar could also pressure Pakistan’s trade balance and increase costs for paying off debts in USD or AED. Experts suggest Pakistan focus on growing exports and stabilizing the PKR to tackle these issues.
UAE’s Economic Strength Keeps the Dirham Solid
The UAE’s economy is thriving, thanks to its shift away from oil and big investments in tech, green energy, and bustling trade and tourism in cities like Dubai and Abu Dhabi. With strong fiscal policies and top-tier infrastructure, the UAE is a magnet for global investment, as shown in World Bank reports. The Central Bank of the UAE’s careful oversight keeps the Dirham reliable, making it a go-to for international trade. This economic strength supports the Dirham’s value, even with today’s slight drop.
, the official currency of the United Arab Emirates. The Pakistani Rupee (PKR), Pakistan’s currency since 1948){kind=link}