Karachi/Dubai, June 25, 2025 – The UAE Dirham (AED) continued its upward trajectory against the Pakistani Rupee (PKR), trading at 77.25 PKR today, up from 77.24 yesterday and 77.21 two days ago. This marks a steady climb from 76.44 PKR at the start of June, with the AED gaining 0.81 PKR over the month.
UAE Dirham- Latest Updates on AED RATES
Valuation Dynamics
The AED’s rise is largely attributed to the UAE’s robust economic fundamentals, underpinned by stable oil prices and strong foreign investment inflows. The Dirham, pegged to the US Dollar at a fixed rate of 3.6725 AED to 1 USD, benefits from the Dollar’s global strength. Meanwhile, Pakistan’s economy faces challenges, including inflationary pressures and a widening trade deficit, which have weakened the PKR. The State Bank of Pakistan’s interventions to stabilize the Rupee have had limited impact, as market sentiment remains cautious amid external debt obligations.
The gradual appreciation of the UAE Dirham reflects these contrasting economic realities. Since early June, the Dirham’s climb from 76.44 to 77.25 PKR highlights a 1.06% gain, driven by consistent demand for the AED in trade and remittance channels between the UAE and Pakistan.
1 UAE Dirham= 77.25 Pakistani Rupees
Impact
The AED’s strengthening affects various stakeholders. For Pakistani expatriates in the UAE, a stronger Dirham means higher value for remittances sent home, boosting household incomes in Pakistan. In 2024, remittances from the UAE to Pakistan exceeded $3 billion, and this trend is expected to grow with the AED’s rise. However, Pakistani importers dealing with UAE suppliers face higher costs, as goods priced in AED are now more expensive in PKR terms. This could exacerbate Pakistan’s trade imbalance with the UAE, which stood at $2.1 billion in favor of the UAE last year.
For investors, the AED’s stability makes it an attractive currency for holding assets, while the PKR’s depreciation signals caution for those exposed to Pakistani markets. Analysts suggest that without significant policy reforms, the PKR may face further pressure.
Currency Overview
The UAE Dirham (AED), introduced in 1973, is the official currency of the United Arab Emirates. Pegged to the US Dollar, it is widely used in global trade and finance, reflecting the UAE’s economic diversification and stability. The Pakistani Rupee (PKR), established in 1947, is Pakistan’s official currency. Subject to market fluctuations, it is managed by Pakistan’s central bank, which often intervenes to curb volatility amid economic challenges.
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