Karachi, 19 May 2025 – The exchange rate of the UAE Dirham (AED) against the Pakistani Rupee (PKR) has stabilized at 76.67 PKR in the open market, as indicated by the latest reports from the currency market.
This stabilization is attributed to a calm period for the AED-PKR exchange rate, supported by steady remittance inflows and favorable economic conditions in both Pakistan and the UAE.
AED-PKR Exchange Rate Valuation Process
The value of the UAE Dirham relative to the Pakistani Rupee is influenced by market dynamics and actions taken by the central bank. The Dirham is pegged to the US Dollar at approximately 3.67 AED/USD, a system maintained by the UAE Central Bank since 1997. This peg links the Dirham’s changes to the US Dollar, supported by the UAE’s oil-driven economy and diversified investments.
1 UAE DIRHAM = 76.67 PAKISTANI RUPEES
On the other hand, the value of the PKR is managed through a floating exchange rate, largely influenced by foreign exchange market supply and demand, with the State Bank of Pakistan occasionally intervening to reduce volatility. Factors such as foreign reserves, trade balance, inflation, and remittances, including the $3.1 billion received from the UAE in February 2025, impact the PKR’s worth.
The exchange rate between the AED and PKR is determined daily based on both interbank and open market rates. Banks and currency exchanges set the buying rate at 76.67 PKR, while the selling rate hovers around 77.25 PKR, usually with a slight premium for sellers. This exchange rate is generally updated at 8:00 AM Pakistan Standard Time and may vary throughout the day in response to market conditions.
Impact of Stability
The fixed exchange rate of 76.67 PKR for the AED has important implications for Pakistan and its citizens residing in the UAE. For the over two million Pakistanis employed in the UAE, a fixed exchange rate provides stability in remittances, enabling family businesses in Pakistan to invest. It also aids companies involved in trading food items, textiles, and construction materials between the two countries by minimizing currency risks.
For Pakistan’s economy, having a stable AED-PKR exchange rate supports the flow of remittances, which is a crucial element of foreign exchange reserves. Experts attribute this balance to prudent trading practices, healthy reserves, and low speculative pressure. The UAE remains a vital financial support for Pakistan, with remittances playing a significant role in stabilizing the PKR. Nevertheless, the managed float of the PKR makes it vulnerable to domestic issues such as inflation and trade deficits. Currency analysts caution that while the AED-PKR rate is currently stable, investors and traders should stay alert to changes in global oil prices and geopolitical developments that could impact the US Dollar and, subsequently, the Dirham.
Overview of AED and PKR
The UAE Dirham, introduced in 1973 as a replacement for the Qatar and Dubai Riyal, serves as the official currency of the UAE, issued by the UAE Central Bank and divided into 100 fils. Denoted as AED, its peg to the US Dollar ensures stability backed by the UAE’s oil wealth, prudent fiscal management, and its role as a global trade hub. The Dirham is extensively used throughout the seven emirates, including Dubai and Abu Dhabi, and various resort areas.
DOLLAR RATE TODAY IN PAKISTAN- LIVE
Established in 1947, the Pakistani Rupee is the official currency of Pakistan, also divided into 100 paise, and represented by “₨” or “Rs.” It is issued by the State Bank of Pakistan and operates under a controlled floating system, responding to internal factors such as inflation, trade deficits, and available reserves. The stability of the PKR is significantly influenced by remittances from the UAE. The fixed rate of 76.67 PKR for the AED showcases the strong economic
