Karachi – May 23, 2025:
The UAE Dirham (AED) is trading at PKR 76.44 in the open market today, reflecting a period of exchange rate stability between the Dirham and Pakistani Rupee (PKR). This steadiness comes amid balanced remittance flows and favorable economic conditions in both Pakistan and the UAE.
How the AED-PKR Rate Is Determined
The UAE Dirham is pegged to the U.S. Dollar at a rate of approximately 3.67 AED/USD, a system adopted by the UAE Central Bank in 1997. This peg ensures the Dirham remains stable and reliable, backed by the UAE’s oil-rich economy and diversifying economic base.
On the other hand, the PKR operates under a managed float, where its value is largely determined by market forces—supply and demand—along with interventions by the State Bank of Pakistan (SBP). Elements like foreign reserves, inflation, trade performance, and significant remittance inflows—such as the $3.1 billion received from the UAE in February 2025—impact the PKR’s standing.
The daily AED-PKR exchange rate combines interbank and open market figures. As of this morning, banks and exchange dealers are quoting the buying rate at PKR 76.67 and the selling rate at around PKR 77.25, with rates subject to slight variation throughout the day.
Implications of a Stable Exchange Rate
The consistent AED-PKR rate is particularly beneficial for over 2 million Pakistani workers residing in the UAE. It reassures expatriates when sending money home and supports families and small businesses reliant on these inflows in Pakistan. Moreover, a stable rate reduces risk for traders importing and exporting goods such as textiles, food, and construction materials between the two nations.
For Pakistan’s economy, steady remittances from the UAE bolster foreign currency reserves and contribute to exchange rate predictability. Experts credit this stability to disciplined financial management, strong reserves, and low speculative pressure.
However, caution remains warranted. The PKR’s floating mechanism makes it vulnerable to domestic pressures like inflation and trade deficits. Additionally, geopolitical risks or volatility in global oil markets—which could impact the U.S. Dollar—may indirectly affect the AED due to its dollar peg.
Currency Overview
The UAE Dirham, introduced in 1973, replaced the Qatar and Dubai Riyal. Issued by the UAE Central Bank, it is divided into 100 fils and used throughout all seven emirates, including major hubs like Dubai and Abu Dhabi. Its peg to the U.S. Dollar provides a stable foundation for trade and remittances.
The Pakistani Rupee (PKR), in use since 1947, is issued by the State Bank of Pakistan and is divided into 100 paise. It functions under a managed floating regime, reacting to various economic indicators. Remittances from the UAE are a critical support for the rupee’s valuation, helping maintain economic balance.
As of today, the AED’s buying rate is 76.67 PKR, and its open market rate is 76.44 PKR, reflecting overall currency stability and a positive outlook for financial ties between Pakistan and the UAE.
