Karachi, May 19, 2025 – The exchange rate of the UAE Dirham (AED) against the Pakistani Rupee (PKR) has remained steady in the open market, standing at Rs. 76.67 per Dirham, as reported by currency dealers.
This period of rate stability is largely attributed to consistent remittance flows and favorable economic indicators in both Pakistan and the UAE.
How the AED-PKR Exchange Rate Is Determined
The Dirham’s value is pegged to the US Dollar at a fixed rate of approximately 3.67 AED/USD, a policy maintained by the UAE Central Bank since 1997. This peg ensures that the AED’s fluctuations mirror changes in the Dollar, supported by the UAE’s robust oil economy and global investments.
Conversely, the Pakistani Rupee operates under a managed float, with rates shaped by market forces such as supply and demand, foreign reserves, inflation, and trade balances. The State Bank of Pakistan occasionally intervenes to minimize excessive volatility.
Recent remittances, particularly the $3.1 billion received from the UAE in February 2025, have played a major role in supporting the PKR.
Current Market Rates
- 1 AED = Rs. 76.67 (Buying Rate)
- Selling Rate: Approximately Rs. 77.25
Rates are typically updated daily at 8:00 AM PST, but may vary slightly throughout the day based on market activity.
Why Stability Matters
The stable exchange rate offers reassurance to over two million Pakistanis living and working in the UAE. It ensures reliable remittance values for families back home and benefits businesses involved in bilateral trade, especially in food, textiles, and construction materials.
From a macroeconomic perspective, this stability boosts Pakistan’s foreign exchange reserves and reduces currency risk in import-export activities.
Caution Ahead
While the AED-PKR exchange rate is currently stable, currency analysts warn that factors like global oil price movements and regional geopolitical tensions could disrupt the balance. Since the Dirham is tied to the Dollar, any fluctuation in USD performance could indirectly impact the AED-PKR rate.
Currency Backgrounds
- UAE Dirham (AED): Introduced in 1973, issued by the UAE Central Bank, and divided into 100 fils. Widely accepted across all Emirates and backed by strong fiscal policies.
- Pakistani Rupee (PKR): Established in 1947 and issued by the State Bank of Pakistan. Divided into 100 paise and influenced by local economic factors and foreign remittances.
