Karachi, 24 May 2025 – The open market exchange rate for the UAE Dirham (AED) stands at 76.44 PKR against the Pakistani Rupee (PKR), according to the most recent currency market data.
This stability is a result of a calm period for the AED-PKR exchange, supported by consistent money transfers and robust economic conditions in both Pakistan and the UAE.
Procedure for Analyzing the AED-PKR Exchange Rate
The exchange value of the UAE Dirham in relation to the Pakistani Rupee is influenced by market dynamics and interventions from the central bank. The Dirham is pegged to the US Dollar at approximately 3.67 AED/USD, a system that the UAE Central Bank established in 1997. This fixed exchange rate maintains the Dirham’s alignment with the US Dollar, backed by the UAE’s oil-based economy and initiatives to diversify into other sectors.
1 UAE DIRHAM = 76.44 PAKISTANI RUPEES
Conversely, the PKR’s value is managed through a floating exchange rate system. Our analysis indicates that the demand and supply for foreign exchange primarily govern this mechanism. The State Bank of Pakistan occasionally intervenes to reduce volatility. Factors like remittances, foreign reserves, trade balances, and inflation, especially the $3.1 billion received from the UAE in February 2025, also impact the PKR’s value.
The daily conversion rate from AED to PKR is derived from both the interbank and open market exchange rates. Banks and currency exchange firms quote a buying rate of 76.67 PKR and a selling rate of approximately 77.25 PKR, with a slight additional charge for sellers. This information is refreshed every day at 8:00 AM Pakistan Standard Time and may vary throughout the day according to market fluctuations.
Influence of Stability
The fixed exchange rate of 76.44 PKR for the UAE Dirham has significant ramifications for Pakistan and for the over two million Pakistanis working in the UAE. This fixed rate gives them assurance when sending money back home, which is beneficial for family-owned businesses in Pakistan. It also aids trading firms engaged in the import and export of commodities like food, textiles, and construction materials between the UAE and Pakistan, as it mitigates currency risks.
For the economy of Pakistan, a stable AED-PKR exchange rate facilitates smooth remittances, which are vital for maintaining foreign exchange reserves. Experts indicate that this stability arises from sound trading practices, solid reserves, and low speculative pressure. The UAE serves as a crucial economic partner for Pakistan, where remittances play a key role in stabilizing the PKR. Nonetheless, the PKR’s managed floating system makes it vulnerable to internal factors such as inflation and trade deficits. Currency analysts warn that while the AED-PKR exchange rate is currently stable, market participants should remain vigilant about potential volatility stemming from global oil prices and geopolitical tensions that could affect the value of the US Dollar and, by extension, the Dirham.
Overview of AED and PKR
The UAE Dirham was introduced in 1973 to replace the Qatar and Dubai Riyal as the official currency of the UAE, issued and managed by the UAE Central Bank and subdivided into 100 fils. Abbreviated as AED, its peg to the US Dollar is maintained by the UAE’s oil wealth, prudent fiscal policies, and its role as a global trade hub. The Dirham is widely utilized across all seven emirates, especially in major urban centers like Dubai and Abu Dhabi, as well as in popular tourist areas.
The Pakistani Rupee has been in circulation since 1947 and serves as the currency for Pakistan, divided into 100 paise and symbolized by “₨” or “Rs.” It is issued by the State Bank of Pakistan and operates under a controlled floating regime. This means it changes based on various elements like inflation, trade deficits, and the availability of reserves. Remittances sent back from the UAE are crucial for maintaining the stability of the PKR. An exchange rate of 76.67 PKR per 1 AED indicates that the country’s economy is stable.
Leave a Comment