Karachi/Dubai, December 12, 2025: The UAE Dirham (AED) has declined sharply to 76.29 Pakistani Rupees today, down 0.12 PKR from yesterday’s close of 76.41 PKR — the largest single-day drop since late October.
The move has pushed the AED to its lowest level in nearly three months, offering a welcome windfall for the 1.5 million Pakistanis living and working in the Emirates.
Market sources attribute the sudden softening to a combination of:
- A stronger-than-expected PKR rally after the State Bank of Pakistan successfully raised $1 billion via Eurobonds at a lower yield than anticipated.
- Seasonal profit-taking in the UAE forex market ahead of year-end holidays.
- Mild USD weakness globally after the US Federal Reserve signalled no rush to hike rates further.
Even with today’s dip, the Dirham remains up 0.85 PKR (+1.1%) year-to-date from January’s average of 75.44 PKR, but the last six weeks have seen a clear downward drift from the August peak of 77.32 PKR.
Instant boost for Pakistani families
Every dirham sent home today converts to 12 paisas more than yesterday — small individually, but significant when multiplied across the $700–750 million that flows monthly from the UAE to Pakistan.
A worker earning 4,000 AED now sends home roughly 305,160 PKR instead of 305,640 PKR — an extra 480 rupees per salary that can cover school fees, utility bills, or groceries for many households.
Quick numbers – where we stand
| Period | Rate (PKR per AED) | Change |
|---|---|---|
| Today (Dec 12) | 76.29 | −0.12 PKR |
| Yesterday | 76.41 | |
| 7-day high | 76.50 | |
| 30-day average | 76.44 | |
| 2025 high (Aug) | 77.32 | |
| 2025 low (Jan) | 75.44 |
Looking ahead – 2026 forecasts
Most analysts expect the AED-PKR pair to stabilise between 76.00 and 77.00 through the first quarter of 2026.
- Bullish scenario (PKR weakens): up to 77.50 Pakistani Rupee if oil prices rebound strongly.
- Bearish scenario (PKR strengthens further): possible slide toward 75.80 PKR if Pakistan’s reserves continue rising.
Whatever the direction, the Dirham remains one of the most predictable currencies for overseas Pakistanis — a rare comfort in an otherwise volatile global forex landscape.
Today’s rate: 1 AED = 76.29 PKR
A small drop on the board, but a meaningful gain in the pockets of families back home.