UAE Dirham to Pakistani Rupee Rate- 27 Oct. 2025

KARACHI – The UAE Dirham to Pakistani Rupee exchange rate is recorded at PKR 76.50 on October 27, 2025, marking a minor decrease of 0.02 PKR from the previous day’s rate of 76.52 PKR.

This slight movement reflects ongoing adjustments in regional and global financial markets, signaling stability in one of South Asia’s most important currency corridors.

Today’s AED to PKR rate of 76.50 serves as a crucial benchmark for the extensive Pakistani diaspora in the United Arab Emirates and the robust trade relationship between both nations. Recent market data shows the exchange rate has fluctuated between a high of 76.62 PKR on October 20 and a low of 76.48 PKR on October 23, demonstrating tight trading ranges and minimal volatility over the past week.

The current rate positions the Pakistani Rupee at a relatively stronger level compared to mid-2025, when the exchange rate experienced significant pressure. This stability provides a measure of predictability for businesses, expatriates, and travelers dependent on cross-border transactions between Pakistan and the UAE.

Understanding the Currencies

The United Arab Emirates Dirham represents the official currency of one of the world’s most prosperous and diversified economies. The Dirham maintains a fixed peg with the US Dollar at 3.6725 AED per USD, a policy upheld by the Central Bank of the UAE since 1997. This peg provides exceptional stability, making the Dirham a trusted currency for international trade, investment, and remittances. The UAE’s strategic position as a global business hub, combined with its substantial oil wealth and aggressive economic diversification efforts, has established the Dirham as a cornerstone currency for millions of South Asian expatriate workers.

The UAE economy continues to reinforce the Dirham’s value through diversification and innovation, moving beyond oil dependency with heavy investments in technology, renewable energy, and tourism, aligning with UAE Vision 2031. Dubai and Abu Dhabi function as premier international financial centers, attracting substantial foreign direct investment and fostering economic resilience that underpins currency strength.

The Pakistani Rupee, Pakistan’s sovereign currency since independence in 1947, operates under a market-determined exchange rate system managed by the State Bank of Pakistan. Unlike the fixed-peg Dirham, the Rupee’s value responds to market supply and demand dynamics, influenced by Pakistan’s trade balance, foreign exchange reserves, inflation rates, and fiscal policies. Pakistan’s economy—driven by textiles, agriculture, remittances, and services—confronts persistent structural challenges including elevated inflation, substantial external debt, and recurring balance of payments pressures. The Rupee’s performance against stable currencies like the Dirham provides a vital indicator of Pakistan’s macroeconomic health.

Valuation Criteria and Historical Trends

The AED to PKR exchange rate has experienced notable fluctuations throughout 2025. The year opened with the rate at 75.82 PKR on January 10, 2025, marking the annual low. By March 10, the rate surged to a peak of 79.87 PKR, representing significant Rupee depreciation during that period. In June 2025, the exchange rate climbed from 76.44 PKR to 77.25 PKR, reaching its highest at 77.61 PKR on July 1, 2025.

Today’s rate of 76.50 PKR reflects a strengthening of the Rupee from those mid-year peaks, suggesting improved economic fundamentals or successful policy interventions by Pakistani monetary authorities. The average AED to PKR exchange rate for 2025 stands at 76.70 PKR, positioning today’s rate slightly below this annual average.

Multiple interconnected factors drive AED to PKR valuations. Pakistan’s inflation trajectory remains paramount—elevated domestic inflation erodes the currency’s purchasing power and typically weakens it against stable counterparts like the Dirham. The State Bank of Pakistan’s monetary policy stance, particularly interest rate decisions aimed at controlling inflation while supporting economic growth, directly influences currency attractiveness.

Global oil prices exert asymmetric effects on both economies. As a major oil exporter, the UAE benefits economically from higher crude prices, while Pakistan, as a substantial net importer, faces increased import bills and balance of payments pressure. This divergence can pressure the Rupee downward when energy prices rise significantly.

Remittance flows constitute a critical support mechanism for the Pakistani Rupee. Pakistani expatriates in the UAE remitted $717.2 million in June 2025, positioning the UAE as Pakistan’s second-largest remittance source. Strong remittance inflows increase foreign currency supply in Pakistan’s forex market, helping stabilize the Rupee. Political stability, governance quality, and policy consistency also play vital roles—uncertainty typically triggers capital outflows and currency depreciation.

Impact on Key Stakeholders

The current exchange rate creates distinct implications for various groups dependent on the AED-PKR corridor. For over 1.5 million Pakistani expatriates living in the UAE, today’s Dirham rate offers a slight edge for remittances, as even a 0.02 PKR fluctuation per Dirham can make a noticeable difference when sending money home.

At today’s rate of 76.50, a Pakistani worker earning 5,000 AED monthly can remit approximately PKR 382,500 to family members in Pakistan. These remittances directly support household budgets across Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan, funding education expenses, healthcare costs, housing needs, and daily living requirements. A stronger AED benefits families supporting education, healthcare, and housing expenses.

For Pakistani businesses importing goods from the UAE—including electronics, machinery, construction materials, and consumer products—today’s rate provides relative cost stability compared to earlier in the year. Conversely, Pakistani exporters to the UAE, particularly in textiles, agricultural products, and light manufacturing, may face slight competitiveness pressures as their products become marginally more expensive in Dirham terms.

Travelers represent another affected group. At the current rate, Pakistani tourists or business travelers visiting Dubai or Abu Dhabi would pay PKR 76,500 for every 1,000 AED of expenses, covering hotel accommodations, dining, shopping, and transportation. However, the rate also raises the cost of importing UAE goods like electronics and food, subtly influencing Pakistan’s inflation trends.

Financial market participants and policymakers view the relatively stable AED to PKR rate as a positive signal for Pakistan’s external sector. Sustained stability suggests improved macroeconomic management and can support investor confidence, though underlying structural vulnerabilities warrant continued vigilance.

Recent Performance and Forward Outlook

Throughout 2025, the AED to PKR rate has mostly stayed between PKR 75.8 and PKR 77.2, demonstrating greater stability compared to previous years marked by sharp depreciation episodes. This improved stability partly reflects Pakistan’s engagement with international financial institutions, structural reform efforts, and improved policy coordination aimed at stabilizing the external sector.

Experts predict that by December 2025, the AED to PKR rate will remain between PKR 75.8 and PKR 77.0, with no major changes expected. This outlook assumes continued implementation of reform programs, stable global economic conditions, and no major external shocks.

However, significant challenges persist that could introduce volatility. Pakistan’s foreign exchange reserves remain under pressure from substantial debt servicing obligations and import requirements. While inflation has moderated from peak levels, it continues above target ranges, requiring sustained monetary tightening. The agricultural sector’s performance will influence both export earnings and domestic inflation dynamics. Political developments and policy continuity remain crucial for maintaining investor confidence and currency stability.

Global factors also play important roles. US Federal Reserve monetary policy decisions affecting dollar strength, international oil price movements, and broader emerging market sentiment all influence the AED to PKR exchange rate. Any significant shifts in these external variables could challenge current stability.

Key Takeaways

Today’s Rate: AED to PKR stands at 76.50 on October 27, 2025
Daily Movement: Decreased 0.02 PKR from previous day’s 76.52 PKR
Annual Context: Strengthened significantly from March peak of 79.87 PKR; below annual average of 76.70 PKR
Remittance Impact: UAE contributed $717.2 million monthly, supporting Pakistan’s foreign exchange position
Stability Outlook: Experts forecast range-bound trading between 75.8-77.0 PKR through year-end

For the extensive Pakistani expatriate community in the UAE and businesses engaged in bilateral trade, monitoring exchange rate movements remains essential for effective financial planning. While today’s rate reflects relative stability and represents a favorable position compared to earlier in the year, the complex interplay of domestic and international economic factors means stakeholders should remain informed about evolving conditions in both countries.

The slight strengthening of the Rupee to 76.50 Pakistani Rupee provides modest relief for importers and businesses with Dirham-denominated obligations, while expatriate workers continue benefiting from stable remittance values that support families across Pakistan.

Note: Exchange rates vary between interbank, open market, and retail channels. The rate mentioned represents an indicative market rate and may differ from rates offered by commercial banks, exchange companies, and money transfer services. Individuals and businesses should verify current rates with authorized dealers before conducting transactions.