Karachi, 16 May 2025 – The United Arab Emirates Dirham (AED) exchange rate against the Pakistani Rupee (PKR) remained stable at 76.67 PKR in the open market, as per recent currency market reports.
This stability is a result of a calm phase of the AED-PKR exchange rate, with the support of steady remittance inflows and peaceful economic conditions in Pakistan and the UAE.
AED-PKR Exchange Rate Valuation Process
The value of the UAE Dirham versus the Pakistani Rupee is influenced by market forces and central bank policies. The AED is pegged to the US Dollar at approximately 3.67 AED/USD, a peg maintained by the UAE Central Bank since 1997. This correlation couples the Dirham’s movements with the US Dollar, supported by the strong oil-based economy of the UAE and diversified investments.
1 UAE DIRHAM = 76.67 PAKISTANI RUPEES
On the other hand, the PKR has a managed float, propelled by supply and demand in the foreign exchange market, with the State Bank of Pakistan intervening at times to reduce volatility. Foreign reserves, trade balance, inflation, and remittances, like the February 2025 $3.1 billion from the UAE, determine the PKR value.
The rate of AED-PKR is set every day by interbank and open market rates. Buying rates are set by banks and exchange houses at 76.67 PKR, and selling rates are approximately at 77.25 PKR with a slight premium to the sellers. The rates are usually revised at 8:00 AM Pakistan Standard Time and can change during the day depending on market forces.
Impact of Stability
The AED’s stable exchange rate of 76.67 PKR has a bearing on Pakistan and Pakistanis living in the UAE. For more than two million Pakistanis employed in the UAE, stable exchange rates guarantee stable remittances, helping family businesses invest in Pakistan. The stability also helps businesses dealing in foodstuffs, textile, and building materials between the two countries by limiting currency risks.
For Pakistan’s economy, a stable exchange rate of AED-PKR supports remittance flows, an essential element of foreign exchange reserves. Experts credit such a balance to strong trade, solid reserves, and negligible speculative pressure. The UAE continues to be an important financial lifeline for Pakistan, with remittances stabilizing the PKR. Nevertheless, the managed float of the PKR subjects it to domestic issues such as inflation and trade deficits. Currency analysts recommend that although the AED-PKR exchange rate is presently stable, investors and traders need to keep an eye on international oil prices and geopolitical situations that may influence the US Dollar and, in the process, the Dirham.
Overview of AED and PKR
The UAE Dirham, launched in 1973 to replace the Qatar and Dubai Riyal, is the official currency of the UAE, printed by the UAE Central Bank, and divided into 100 fils. Symbolized by AED,” its US Dollar peg ensures stability, supported by the UAE oil wealth, prudent fiscal policies, and position as a world trade hub. It is used extensively in all seven emirates, including Dubai and Abu Dhabi, and popular holiday resorts.
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The Pakistani Rupee (PKR), which was founded in 1947, is the currency of Pakistan, divided into 100 paise and represented by “₨” or “Rs.” It is issued by the State Bank of Pakistan and functions under a controlled float, thus being sensitive to internal factors such as inflation, trade deficit, and reserves. Remittances from the UAE have an important bearing on its stability. The fixed AED rate of 76.67 PKR indicates close Pakistan-UAE economic relations through trade and remittances. While the AED is helped by its US Dollar peg, the value of the PKR rests on the overall economic health of Pakistan. The stable rate provides assurance to businesses and expatriates, but caution is needed as external and internal influences may dictate future directions.
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