Karachi, 17 May 2025 – UAE Dirham (AED) versus the Pakistani Rupee (PKR) exchange rate stabilized at 76.67 PKR in the open market, according to recent currency market reports.
Such a stabilization is the outcome of a tranquil phase of the AED-PKR exchange rate with the support of consistent remittance inflows and peaceful economic times in Pakistan and the UAE.
AED-PKR Exchange Rate Valuation Process
The exchange rate of the UAE Dirham to Pakistani Rupee is determined by market forces and central bank actions. AED is pegged to the US Dollar at around 3.67 AED/USD, a peg that has been kept by the UAE Central Bank since 1997. This relationship ties Dirham’s fluctuations with the US Dollar, backed by the UAE’s high oil-based economy and diversified investments.
1 UAE DIRHAM = 76.67 PAKISTANI RUPEES
Conversely, the PKR is under managed float, driven by supply and demand in the foreign exchange market with occasional interventions by the State Bank of Pakistan to curb volatility. Foreign reserves, trade balance, inflation, and remittances such as the February 2025 $3.1 billion from the UAE drive the value of PKR.
The AED-PKR exchange rate is determined on a daily basis by interbank and open market rates. Banks and exchange houses fix the buying rates at 76.67 PKR, while the selling rate is around 77.25 PKR with a marginal premium to the sellers. The exchange rate is typically updated at 8:00 AM Pakistan Standard Time and may fluctuate throughout the day based on market forces.
Impact of Stability
AED’s fixed exchange rate of 76.67 PKR has implications for Pakistan and Pakistani residents in the UAE. For over two million Pakistanis working in the UAE, fixed exchange rates ensure stable remittances, allowing family businesses to make investments in Pakistan. It also benefits businesses that trade foodstuffs, textile, and construction materials between the two nations by restricting currency risks.
For Pakistan’s economy, a stable exchange rate of AED-PKR helps maintain remittance flows, a key component of foreign exchange reserves. Specialists attribute such balance to sound trade, sound reserves, and minimal speculative pressure. The UAE remains a vital source of financial lifeline for Pakistan, with remittances pegging the PKR. However, the managed float of the PKR exposes it to local problems like inflation and trade deficit. Currency experts advise that while the AED-PKR exchange rate is currently stable, investors and traders must remain watchful of global oil prices and geopolitical events that could impact the US Dollar and, thereby, the Dirham.
Overview of AED and PKR
The UAE Dirham, introduced in 1973 to depreciate the Qatar and Dubai Riyal, is the UAE official currency, printed by the UAE Central Bank, and sub-divided into 100 fils. Represented by AED,” its US Dollar peg guarantees stability by the backing of the UAE oil reserves, sound fiscal management, and status as a center of world trade. It is widely used in the entire seven emirates, such as Dubai and Abu Dhabi, and holiday resort destinations.
The Pakistani Rupee, established in 1947, is Pakistan’s currency, subdivided into 100 paise and denoted by “₨” or “Rs.” The State Bank of Pakistan issues it and operates on a controlled float, thereby being responsive to internal determinants like inflation, trade deficit, and reserves. Remittances from the UAE significantly influence its stability. The fixed AED rate of 76.67 PKR reflects strong Pakistan-UAE economic ties through remittances and trade.
DOLLAR RATE TODAY IN PAKISTAN- LIVE
Though the AED is aided by its US Dollar peg, the value of the PKR depends on the general economic condition of Pakistan. The stable rate gives confidence to expatriates and businesses, but care must be exercised since outside and domestic factors can influence future trends.
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