KARACHI – The UAE Dirham to Pakistani Rupee exchange rate stands at PKR 76.37 on Thursday, December 5, 2025, maintaining exceptional strength as December trading continues.
This sustained favorable positioning delivers significant advantages for cross-border transactions between Pakistan and the UAE.
Today’s rate of 76.37 PKR continues the favorable trend established in late November, though various market sources show rates around 77.10 PKR, indicating variations across different trading channels. The consistency near historically strong levels provides predictability for millions of stakeholders dependent on the AED-PKR corridor.
The six-month average stands at approximately 76.84 PKR, placing today’s rate below this benchmark and underscoring advantageous conditions for Pakistan’s currency as December unfolds.
Currency Profiles
UAE Dirham: The Central Bank of the UAE maintains a fixed peg at 3.6725 AED per US Dollar since 1997, ensuring exceptional stability. The Dirham is abbreviated as AED and symbolized by د.إ. Known for its stability, the dirham is pegged to the US dollar, providing predictability in foreign exchange. The currency plays a significant role in the Middle East, supported by the UAE’s robust economy, driven by oil exports and international trade.
Pakistani Rupee: Operating under a managed float mechanism, the Pakistani rupee is subdivided into 100 paise and adjusts to trade balance variations, foreign exchange reserve fluctuations, inflation pressures, and remittance inflows. The Pakistani Rupee is not considered a reserve currency. Today’s sustained strength signals effective monetary supervision and successful policy execution.
Valuation Determinants
Inflation Gaps: Pakistan’s elevated inflation compared to the UAE’s near-zero inflation continuously erodes the Rupee’s purchasing capacity, requiring State Bank interventions through monetary policy modifications and interest rate adjustments.
Energy Price Impact: Global oil valuations affect both economies asymmetrically—bolstering the UAE as an exporter while straining Pakistan as an importer. The UAE’s robust economy driven by oil exports and international trade supports the Dirham’s strength.
Remittance Channels: The UAE serves as Pakistan’s second-largest remittance source after Saudi Arabia. Consistent inflows reinforce currency stability and strengthen foreign exchange reserves, underpinning favorable rate positioning.
Trade Deficits: Pakistan imports considerable quantities of fuel, machinery, and consumer goods from the UAE, creating ongoing Dirham requirements balanced by robust remittance inflows.
2025 Performance Analysis
The year witnessed considerable volatility. The highest exchange rate in 2025 reached 79.868 PKR on March 10, while the lowest was 75.817 PKR on January 10. The 2025 average sits at 76.698 PKR, with today’s rate of 76.37 substantially below this benchmark.
Over the past 90 days, the Dirham has weakened by 0.02% against the Rupee, reflecting changing economic dynamics between the UAE and Pakistan. In the last 10 years, the highest rate from AED to PKR was on September 5, 2023 when each AED was worth Rs. 83.881—making today’s rate significantly more favorable for Pakistan.
Monthly data reveals March averaged 76.424 PKR (range: 76.111-79.868), April averaged 76.405 PKR (range: 76.235-76.532), May averaged 76.751 PKR (range: 76.495-77.041), June averaged 77.068 PKR (range: 76.710-77.543), while November saw sustained strength near record favorable levels.
Stakeholder Effects
Expatriate Workers: At 76.37 PKR, someone earning 5,000 AED monthly can send approximately PKR 381,850 to Pakistan—among the most favorable conversions of the year. The sustained strong Rupee delivers consistent purchasing power for families dependent on overseas income.
Business Entities: Importers benefit substantially from today’s advantageous rate through reduced expenses for UAE merchandise including electronics, machinery, and consumer goods. The strong Rupee positioning helps moderate inflation pressures by lowering import costs.
Travelers: Pakistani nationals visiting the UAE find 1,000 AED converting to PKR 76,370—highly affordable travel expenses. Their accommodation, dining, and shopping costs benefit from the favorable Rupee positioning.
Market Projections
The rate’s maintenance near favorable levels indicates sustained Rupee strength in early December. Pakistan’s ongoing economic restructuring and reliable remittance streams support this positioning, though challenges from debt servicing remain present as the year approaches its conclusion.
December Update Summary
- Current Rate: 76.37 PKR per AED on Thursday, December 5, 2025
- Position: Maintaining favorable levels from November
- Six-Month Average: Approximately 76.84 PKR—today’s rate below benchmark
- 2025 Range: High of 79.868 PKR (March 10), low of 75.817 PKR (January 10)
- Annual Average: 76.698 PKR—today’s rate favorably positioned
- 90-Day Trend: Dirham weakened 0.02% against Rupee
- 10-Year Context: Highest rate was Rs. 83.881 on September 5, 2023
Today’s rate of 76.37 PKR demonstrates sustained December strength, with the Rupee maintaining favorable levels and delivering benefits for remittance recipients, importers, and travelers engaged in cross-border activities connecting Pakistan and the UAE.
Disclaimer: Exchange rates vary across channels. Verify current rates with authorized dealers before transactions.