Karachi/Dubai, July 9, 2025 — The UAE Dirham (AED) continues to maintain its strength, trading at 77.39 Pakistani Rupees (PKR) as of 5:34 PM PKT — unchanged from the previous day. This stability comes after a notable 0.81 PKR gain in June, when the Dirham rose from 76.44 to 77.25 PKR, highlighting the UAE’s economic resilience and its growing influence in global finance.
UAE’s Diversified Economy Drives Currency Stability
The Dirham’s strength is underpinned by the UAE’s shift from oil reliance to a diverse, innovation-driven economy. Major investments in technology, renewable energy, tourism, and trade infrastructure — especially in Dubai and Abu Dhabi — have made the UAE a preferred hub for global capital.
Backed by the US Dollar at a fixed rate of 3.6725 AED/USD, the Dirham offers reliability that enhances its standing in international markets, further solidifying the UAE’s economic leadership.
1 UAE Dirham = 77.39 Pakistani Rupee
Impact on Pakistan: Remittances Up, Imports Costlier
For millions of Pakistani expatriates in the UAE, the strong Dirham boosts the value of remittances. In May 2025, remittances from the UAE reached $754.2 million, making it Pakistan’s second-largest source after Saudi Arabia. These inflows are vital for household income, economic stability, and local consumption.
However, a stronger AED also means higher import costs for Pakistani consumers and businesses sourcing from the UAE. Products ranging from luxury goods to essential supplies are becoming more expensive, and Pakistan’s USD/AED-linked debts may also feel the pressure.
Experts suggest that Pakistani policymakers must boost exports and stabilize the Rupee to counter the impact of sustained AED strength.
Currency Backgrounds
- UAE Dirham (AED): Introduced in 1973, the Dirham is managed by the UAE Central Bank and pegged to the US Dollar, ensuring global stability.
- Pakistani Rupee (PKR): In circulation since 1948, the PKR operates on a floating exchange rate, and its value fluctuates with domestic and global economic conditions.
