Karachi, 30 May 2025 – The open market exchange rate of the UAE Dirham (AED) is 76.44 PKR against the Pakistani Rupee (PKR), as per the latest currency market data.
UAE Dirham- AED RATE-LATEST
This stability has come after a period of peace for AED and PKR exchange, backed by steady remittances and strong economic conditions in Pakistan and the UAE.
Grasping the AED-PKR Exchange Rate
The UAE Dirham-Pakistani Rupee exchange is subject to market forces as well as intervention by central banks. The Dirham has been kept fixed to the US Dollar at around 3.67 AED/USD since the UAE Central Bank implemented this regime in 1997. The fixed exchange rate is used to maintain the Dirham’s parity with the US Dollar, backed by the UAE’s oil economy and efforts towards diversification into other sectors.
It is, on the other hand, the value of the PKR that is managed under a floating exchange rate regime. Our analysis indicates that it is primarily guided by the demand and supply for foreign exchange. The State Bank of Pakistan occasionally intervenes to soften volatility. Remittances, foreign reserves, trade balance, and inflation—especially the $3.1 billion remitted by the UAE in February 2025—are also factors behind the PKR valuation.
The interbank and open market exchange rates determine the AED to PKR daily conversion. The buy rate is quoted at 76.67 PKR and the sell rate at around 77.25 PKR by banks and exchange companies, in addition to nominal additional commission for the seller. This information is updated on a daily basis at 8:00 AM Pakistan Standard Time and may change throughout the day depending on the changing market.
Impact of Stability
The fixed rate of 76.44 PKR of UAE Dirham has major implications for Pakistan and over two million Pakistani laborers in the UAE. The fixed rate provides them with security while sending remittances back home to the benefit of Pakistani family businesses. The fixed rate also benefits trading companies with operations of importing and exporting goods such as foodstuffs, apparel, and construction materials between Pakistan and the UAE by obliterating currency-related risks.
For Pakistan’s economy, stable exchange rate between AED and PKR facilitates effective remittances, which are essential to sustain foreign exchange reserves. Experts believe that such stability is a result of sound trade practices, solid reserves, and no speculative pressure. UAE is a vital economic partner for Pakistan where remittances stabilize the PKR. However, the managed float regime of the PKR exposes it to local influences such as inflation and trade deficit. Currency analysts warn that, although the AED-PKR rate is stable now, market players must be careful for possible volatility occasioned by foreign developments in oil prices and geopolitical risks that can influence the value of the US Dollar and hence the Dirham.
Summary of AED and PKR
The UAE Dirham, introduced in 1973 to replace the Qatar and Dubai Riyal as the national currency of the UAE, is issued and controlled by the UAE Central Bank and divided into 100 fils. It is abbreviated as AED, and its peg against the US Dollar is supported by the UAE’s oil reserves, prudent fiscal policies, and status as a world trade center. Dirham is also a commonly used currency in all seven emirates, particularly in large cities like Dubai and Abu Dhabi, as well as tourist centers.
The Pakistani Rupee entered circulation in 1947 and is the official currency of Pakistan, subdivided into 100 paise, denoted by “₨” or “Rs.” It is regulated by the State Bank of Pakistan and has a controlled floating exchange rate regime. It fluctuates based on several parameters such as inflation, trade deficits, and reserves availability.
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