Karachi/Dubai – June 20, 2025: The UAE Dirham (AED) maintained its position at Rs. 77.21 against the Pakistani Rupee (PKR) in today’s forex trading, reflecting stability in the currency’s recent upward trend. The rate remains unchanged from the previous day, following a gradual rise from Rs. 77.04 earlier in the week and Rs. 77.14 a day prior.
Throughout June, the AED has shown notable appreciation, climbing from Rs. 76.44 to Rs. 76.96—an overall increase of roughly Rs. 0.77.
Current Rate:
1 UAE Dirham = 77.21 Pakistani Rupees
How the AED-PKR Rate is Determined
The AED-PKR exchange rate is set by the forex market, where it’s influenced by global currency demand and economic indicators. Since the AED is pegged to the US Dollar at a fixed rate of 3.6725, its value largely mirrors the strength of the USD. The Pakistani Rupee, meanwhile, is a floating currency that reacts to trade deficits, inflation, and domestic monetary policy.
The AED’s recent strength reflects a robust US Dollar and ongoing economic challenges in Pakistan, such as high inflation and a widening trade gap. Exchange rates are set by banks, financial institutions, and forex traders, with guidance from the State Bank of Pakistan (SBP), which issues indicative rates while allowing the market to dictate real-time pricing.
UAE’s Economic Stability Supporting AED
The stability of the Dirham is underpinned by the UAE’s well-managed economy, which has diversified beyond oil into sectors like real estate, tourism, and renewable energy. Key initiatives such as UAE Vision 2021 and the Dubai Plan 2021 have attracted foreign investment and built market confidence.
Low public debt, high foreign exchange reserves, and proactive central bank interventions further strengthen the AED’s reliability, making it a trusted currency for trade and remittances—particularly for countries like Pakistan, where a large number of expatriates reside in the UAE.
Implications of AED’s Rise Against the PKR
The appreciation of the AED benefits Pakistani expatriates by increasing the value of remittances sent home. In 2024 alone, remittances from the UAE contributed over $3 billion to Pakistan’s foreign exchange reserves. A stronger AED boosts recipients’ buying power, providing economic relief to families in Pakistan.
On the downside, the stronger Dirham increases the cost of imports for Pakistani businesses dealing with UAE suppliers, potentially pushing inflation higher. However, Pakistani exports to the UAE may become more competitive, offering some relief through improved trade terms.
Currency Background
The UAE Dirham (AED), introduced in 1973, is symbolized by “?.?” or “AED” and plays a key role in the UAE’s diversified economy.
The Pakistani Rupee (PKR), denoted by “?”, is managed by the State Bank of Pakistan and its value is determined by market forces, making it susceptible to both local and global economic fluctuations.
