Karachi, May 13, 2025 – The UAE Dirham (AED) exchange rate was stable against the Pakistani Rupee (PKR) today at 76.56 PKR in the open market, according to the latest currency exchange market reports.
This stability is a result of a relatively quiet period in the AED-PKR exchange rate, fueled by consistent remittance inflows and stable economic conditions in Pakistan and the UAE.
Process of Valuation for AED-PKR Exchange Rate
The exchange rate between the UAE Dirham and the Pakistani Rupee is impacted by market dynamics and decisions made by central banks. The AED is fixed to the US Dollar at about 3.67 AED for every 1 USD, a policy that has been retained by the Central Bank of the UAE since 1997. The peg binds the Dirham in foreign exchange, making its value move with that of the US Dollar, supported by the strong oil-based economy of the UAE and the diversified investments.
1 UAE Dirham = 76.56 Pakistani Rupees
In contrast, the PKR has a managed floating regime based on demand and supply in the foreign exchange market, while the State Bank of Pakistan at times intervenes to stabilize currency fluctuations. Foreign exchange reserves, trade balance, inflation rate, and remittance inflows are major determinants of the value of the PKR, and the UAE contributed $3.1 billion remittances in February 2025 alone.
The AED-PKR exchange rate is fixed on a daily basis through interbank market rates and open market transactions. Banks and exchange houses fix the buying and selling rates, which are currently a buying rate of 76.56 PKR and a selling rate of around 77.25 PKR, showing the sellers a slight premium. Exchange rates are refreshed from time to time, generally around 8:00 AM Pakistan Standard Time, and can change throughout the day depending on market forces.
Impact of Stability
The stability of the AED at 76.55 PKR has long-term implications for Pakistan and its expatriates in the UAE. For more than two million Pakistani expatriates living in the UAE, a stable exchange rate means a secure value of remittances, allowing them to invest and take care of their families in Pakistan. This consistent rate also favors businesses involved in trade between the two countries, especially in industries such as food, textiles, and building materials, by reducing currency risk.
For Pakistan’s economy, the stability of the AED-PKR exchange rate improves remittance inflows, which are a critical component of the country’s foreign exchange reserves. This stability, as per analysts, is due to balanced trade operations, enhanced foreign exchange reserves, and low speculative pressure in the currency market. The UAE continues to be one of Pakistan’s strongest financial conduits, and remittances play an important role in keeping the PKR stable against other currencies. Nevertheless, the managed floating system of the PKR exposes it to domestic factors like inflation and trade deficits. Experts on currency recommend that, although the AED-PKR rate is strong currently, investors and traders need to stay alert about world oil prices and geopolitical tensions that may affect the US Dollar and, in turn, the value of the Dirham.
Introduction to AED and PKR
The UAE Dirham is the official currency of the United Arab Emirates that was introduced in 1973 to take over from the Qatar and Dubai Riyal. It is paid in Dirhams by the Central Bank of the UAE and is sub-divided into 100 fils, which are represented by the symbols “د.إ” or “Dhs.” The fixed exchange rate of Dirham to the US Dollar helps to stabilize it, backed by the oil-based economy of the UAE, careful fiscal management, and its position as an international trade center. It is widely accepted in all seven emirates, including Dubai and Abu Dhabi, and is widely accepted in popular tourist destinations throughout the region.
The Pakistani Rupee (PKR) was established when Pakistan gained independence in 1947 as the official currency of the country, which is further divided into 100 paise. It is represented by the symbols “₨” or “Rs” and is issued by the State Bank of Pakistan. The PKR has a managed float regime for the exchange rate, which makes it more exposed to domestic economic factors such as inflation, trade deficits, and foreign exchange reserves. The currency is very important to the economy of Pakistan, with expatriate remittances from the UAE significantly affecting its stability. Today, the UAE Dirham fixed rate of 76.55 PKR represents the bilateral economic relationship between Pakistan and the UAE on the basis of trade and remittances. While the AED is privileged with a peg to the US Dollar, the PKR’s value is determined by the overall economic fundamentals of Pakistan. The stable exchange rate gives a feeling of security to expatriates and businesses, but it is essential to be vigilant as both external and internal forces might affect future directions.
