Karachi, 22 May 2025 – The open market exchange rate for the UAE Dirham (AED) against the Pakistani Rupee (PKR) has settled at 76.44 PKR, as reported by the latest currency market data.
This stabilization results from a calm phase in the AED-PKR exchange, bolstered by consistent remittance inflows and positive economic conditions in both Pakistan and the UAE.
Evaluation Process for AED-PKR Exchange Rate
The exchange rate of the UAE Dirham relative to the Pakistani Rupee is influenced by market dynamics and intervention by the central bank. The Dirham is anchored to the US Dollar at approximately 3.67 AED/USD, a system established by the UAE Central Bank since 1997. This fixed peg ties the movement of the Dirham to the US Dollar, supported by the UAE’s oil-driven economy and efforts to diversify investments.
1 UAE DIRHAM = 76.44 PAKISTANI RUPEES
Conversely, the PKR’s value is regulated through a floating exchange rate system, primarily dictated by supply and demand in the foreign exchange market, with occasional interventions from the State Bank of Pakistan to mitigate volatility. The PKR’s value is also affected by foreign reserves, trade balances, inflation, and remittances, notably the $3.1 billion sent from the UAE in February 2025.
The daily exchange rate between AED and PKR is established based on both open market and interbank rates. Banks and currency exchange businesses set the buying rate at 76.67 PKR, while the selling rate is approximately 77.25 PKR, typically including a slight premium for sellers. This exchange rate updates every day at 8:00 AM Pakistan Standard Time and can change throughout the day based on the market dynamics.
Impact of Stability
The fixed exchange rate of 76.44 PKR for the UAE Dirham carries significant implications for Pakistan and for Pakistanis working in the UAE. For the over two million Pakistanis employed in the UAE, this stable exchange rate enhances the consistency of remittances, which in turn supports family businesses in Pakistan. It also benefits trading companies dealing in food products, textiles, and construction materials between the two nations by reducing currency risks.
For Pakistan’s economy, a steady AED-PKR exchange rate facilitates the smooth flow of remittances, which is a crucial element of foreign exchange reserves. Experts suggest that this equilibrium is attained through sound trading practices, robust reserves, and minimal speculative pressure. The UAE remains a key provider of financial assistance for Pakistan, with remittances playing a vital role in stabilizing the PKR. Nevertheless, the managed floating of the PKR renders it susceptible to domestic challenges such as inflation and trade deficits. Currency analysts warn that although the AED-PKR rate is stable at present, investors and traders should remain alert to potential fluctuations in global oil prices and geopolitical factors impacting the US Dollar and consequently the Dirham.
Summary of AED and PKR
The UAE Dirham was introduced in 1973 to replace the Qatar and Dubai Riyal, serving as the official currency of the UAE, issued by the UAE Central Bank and subdivided into 100 fils. Known by the abbreviation AED, its attachment to the US Dollar is underpinned by the UAE’s oil wealth, sound fiscal strategies, and its position as a global trading hub. The Dirham is widely utilized across the seven emirates, including prominent locations like Dubai and Abu Dhabi, as well as various tourist destinations.
The Pakistani Rupee, which has been in circulation since 1947, is the currency of Pakistan and is divided into 100 paise, represented by “₨” or “Rs.” It is printed by the State Bank of Pakistan and functions under a controlled floating system, responding to internal pressures such as inflation, trade deficits, and available reserves. Remittances from the UAE play a crucial role in ensuring the stability of the PKR. The exchange rate of 76.67 PKR for 1 AED reflects the nation’s robust economic performance.
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