Karachi, May 10, 2025 – UAE Dirham (AED) was unchanged against the Pakistani Rupee (PKR) today at 76.56 PKR in the open market, according to the latest currency exchange market reports. Such stability indicates a phase of relative calm in the AED-PKR currency exchange rate driven by consistent remittance inflow and stable economic conditions in Pakistan and the UAE.
AED-PKR Exchange Rate Valuation Process
The UAE Dirham-Pakistani Rupee exchange rate is influenced by market forces and central bank decisions. The AED is fixed to the US Dollar at around 3.67 AED per 1 USD, a policy followed by the Central Bank of the UAE since 1997. The peg anchors the Dirham in foreign markets, with its value varying in tandem with the US Dollar, supported by the UAE’s strong oil-based economy as well as diversified investments.
1 UAE Dirham = 76.56 Pakistani Rupees
Conversely, the PKR has a managed float system because it depends on demand and supply in the foreign exchange market although sometimes the State Bank of Pakistan stabilizes currency fluctuation. The determinants of the value of the PKR include Pakistan’s foreign exchange reserve, trade accounts, inflation rate, and remittance inflows from the UAE alone that received $3.1 billion remittance in February 2025.
AED-PKR exchange rate is set on a daily basis by interbank market rates and open market deals. The buying and selling rates are decided by banks and exchange houses, as the current rates indicate a buying rate of 76.56 PKR and selling rate of around 77.25 PKR, indicating a small premium for sellers. The exchange rates are updated from time to time, usually at 8:00 AM Pakistan Standard Time, and can change during the day depending on market conditions.
Influence of Stability
The stability of AED 76.55 PKR has long-term consequences for Pakistan and Pakistani expats in the UAE. For more than two million Pakistani expats living in the UAE, a stable exchange rate means a stable value of remittance, allowing them to invest and sustain families in Pakistan. The stable rate also favors companies involved in trade between the two countries, especially food, textiles, and building materials, by eliminating currency risk.
For the Pakistani economy, the AED-PKR stability is advantageous to remittance inflows, which are a crucial element of foreign exchange reserves for the country. The stability, according to analysts, is a result of balanced trade activity, better forex reserves, and low speculative pressure in the currency market. The UAE continues to be one of the most important financial conduits of Pakistan, and remittances are a significant contributor to the stability of PKR against other currencies. But the PKR managed float system exposes it to domestic forces like inflation and trade deficit. Currency experts recommend that although the AED-PKR rate is strong today, the traders and investors need to keep an eye on global oil prices and geopolitical tensions, which can affect the US Dollar and therefore the value of the Dirham.
Introduction to AED and PKR
The UAE Dirham, launched in 1973, is the United Arab Emirates’ official currency and the replacement for the Qatar and Dubai Riyal. The Central Bank of the UAE issues it and subdivides it into 100 fils, abbreviated using the symbol “د.إ” or “Dhs.” Dirham’s peg to the US Dollar helps maintain its stability, with help from the UAE’s oil-dependent economy, fiscal prudence, and position as a world trade center. Dirham is used in all seven emirates, including Abu Dhabi and Dubai, and is in common use among tourist destinations within the region.
The Pakistani Rupee (PKR), introduced into the market when Pakistan gained independence in 1947, is the official currency of Pakistan, which is further divided into 100 paise. It is symbolized as “₨” or “Rs” and is issued by the State Bank of Pakistan. The exchange rate of the PKR follows a managed float system, and hence it is more volatile than the AED on the basis of local economic determinants such as inflation, trade deficits, and foreign exchange reserves. The currency is extremely sensitive in the economy of Pakistan, and expatriate remittances, including in the UAE, are extremely responsible for determining its stability. The pegged stability of UAE Dirham at 76.55 PKR today is a manifestation of the two-way economic relationship between Pakistan and the UAE on the basis of trade and remittances. While the AED has the privilege of being pegged to the US Dollar, the value of the PKR is determined by the overall economic fundamentals of Pakistan. The stable exchange rate is reassuring for expats and businesses but caution should be exercised since external and internal factors can influence future direction. For the latest AED-PKR rates, individuals are requested to approach banks or licensed exchange companies.
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