As of April 14, 2025, the UAE Dirham (AED) remains stable against the Pakistani Rupee (PKR), with an exchange rate of 76.41 PKR in the open market.
This situation illustrates ongoing variability in the foreign exchange market, influenced by a combination of regional economic factors and global trade trends, which offers a favorable rate for overseas Pakistanis sending remittances from the UAE.
1 UAE Dirham is equivalent to 76.41 Pakistani Rupees.
The exchange rate of the AED to the PKR is affected by several important elements. The UAE Dirham, which is pegged to the US Dollar at approximately 3.67 AED to 1 USD, enjoys relative stability owing to the UAE’s strong oil-based economy and sound fiscal policies.
This peg guarantees that the value of the Dirham reflects the performance of the US Dollar in the international marketplace. In contrast, the Pakistani Rupee functions under a managed floating exchange rate system, which means its value is subject to the forces of supply and demand in the forex market, as well as interventions by the State Bank of Pakistan. Elements such as remittance inflows, trade balances, and domestic inflation significantly influence the strength of the PKR. The current exchange rate of 76.42 PKR per AED indicates a marginal appreciation of the Dirham, possibly linked to increased remittance inflows or changes in Pakistan’s economic landscape.
Market experts observe that the UAE plays a vital economic role for Pakistan, with millions of Pakistani expatriates in the UAE sending considerable remittances—estimated at $3.1 billion in February 2025 alone, according to the State Bank of Pakistan. Such inflows frequently enhance the demand for the Dirham in Pakistan, affecting its exchange rate.
The UAE Dirham serves as the official currency of the United Arab Emirates, a federation comprising seven emirates, including Dubai and Abu Dhabi. Established in 1973, it replaced the Qatar and Dubai Riyal and is abbreviated as AED.
The Pakistani Rupee, represented by PKR or “Rs,” has been the official currency of Pakistan since the nation gained independence in 1947. While the Dirham’s stability is grounded in the economic strength of the UAE, the value of the Rupee reflects the broader economic challenges and prospects of Pakistan. The interaction between these two currencies highlights the strong economic relationship between the UAE and Pakistan.
