Karachi/Dubai, June 21, 2025: The UAE Dirham (AED) is currently stable at 77.21 Pakistani Rupees (PKR) in the foreign exchange market today, maintaining the same rate as the previous day. This represents a steady increase from earlier this week when the AED was worth 77.04 PKR, up from 77.14 PKR the day before.
Throughout this month, the AED has seen a significant increase, rising from 76.44 PKR to 76.96 PKR, which indicates a gain of about 0.77 PKR.
1 UAE DIRHAM = 77.21 PAKISTANI RUPEE
Process of Valuing AED Against PKR
The exchange rate for the UAE Dirham against the Pakistani Rupee is set within the foreign exchange (forex) market, where currencies are exchanged based on demand and supply. The AED is fixed to the US Dollar (USD) at a rate of 3.6725 AED to 1 USD, meaning its worth is intrinsically linked to the USD’s performance. In contrast, the PKR is a floating currency, subject to fluctuations influenced by market factors, including trade balances, foreign investments, and Pakistan’s macroeconomic policies.
The recent strengthening of the AED against the PKR can be attributed to the strength of the USD in international markets and the economic difficulties facing Pakistan, such as inflation and trade deficits that have weakened the PKR. Forex traders, banks, and financial organizations utilize real-time data and economic indicators to establish daily exchange rates, with the State Bank of Pakistan issuing an indicative rate while allowing for market-driven fluctuations.
UAE’s Strong Economic Strategies
The UAE’s economic strategies have played a crucial role in the stability and strength of the AED. With a diversified economy supported by sectors like tourism, real estate, and renewable energy, it has lessened its dependence on oil revenues. Initiatives such as the UAE Vision 2021 and the Dubai Plan 2021 have strengthened investor confidence, drawing foreign direct investment (FDI) and bolstering currency stability.
The UAE’s cautious fiscal measures, including minimal public debt and substantial foreign reserves, further support the AED’s peg to the USD. The Central Bank of the UAE actively intervenes in the market to maintain this peg, ensuring that the Dirham remains a dependable currency for international trade and remittances, especially in regions like South Asia, where Pakistani workers represent a large section of the UAE’s expatriate community.
Effects of AED’s Appreciation Against PKR
The rise of the AED against the PKR has both positive and negative consequences. For Pakistani expatriates working in the UAE, this is encouraging news, as their remittances in AED now convert to a higher amount in PKR when sent back home. In 2024, remittances from the UAE to Pakistan were vital for foreign exchange, with contributions exceeding $3 billion annually, per State Bank of Pakistan projections. A stronger AED increases the purchasing power of these remittances, aiding families and local economies in Pakistan.
On the other hand, for Pakistani importers sourcing goods from UAE suppliers, the strengthening AED raises the expense of goods and services, which could contribute to inflation. This situation may negatively affect Pakistan’s trade balance, as imports from the UAE, including petroleum products and consumer items, become pricier. Conversely, Pakistani exporters might gain, as their products become relatively less expensive in AED terms, potentially enhancing their competitiveness in trade.
About AED and PKR
The UAE Dirham (AED), which was introduced in 1973, serves as the official currency of the United Arab Emirates. Pegged to the US Dollar, it is denoted by the symbol “د.إ” or “AED” and is widely utilized in the UAE’s dynamic economy encompassing sectors like trade, finance, and tourism.
The Pakistani Rupee (PKR), represented by the symbol “₨”, is the official currency of Pakistan, regulated by the State Bank of Pakistan. As a floating currency, its value changes based on economic conditions, making it responsive to both domestic and international market trends.
