UAE Dirham to Pakistani Rupee Rate- October 23, 2025

KARACHI – The UAE Dirham to Pakistani Rupee exchange rate stands at PKR 76.54 on October 23, 2025, demonstrating continued stability in a currency pairing that serves as a vital financial bridge between the United Arab Emirates and Pakistan.

Today’s AED to PKR rate of 76.54 represents a critical benchmark for millions of Pakistani expatriates employed in the UAE and the extensive trade networks connecting both nations. Recent market activity shows the exchange rate fluctuating between a high of 76.63 on October 16 and a low of 76.51 on October 22, indicating minimal volatility and relative market confidence in both currencies.

The rate reflects a slight strengthening of the Pakistani Rupee compared to earlier in the week, providing modest relief for importers while presenting marginal challenges for remittance-dependent households.

Understanding the Currencies

The United Arab Emirates Dirham stands as the official currency of one of the Middle East’s most prosperous economies. Introduced in 1973 to replace the Qatar and Dubai Riyal, the Dirham is firmly pegged to the US Dollar at a fixed rate of 3.6725 AED to 1 USD. This peg provides exceptional stability and has made the Dirham a trusted currency for international trade, particularly in energy markets, real estate, and financial services. The Central Bank of the UAE’s prudent monetary management, combined with the country’s substantial oil reserves and diversified economy, has established the Dirham as a cornerstone currency for South Asian expatriate communities.

The Pakistani Rupee, Pakistan’s official currency since 1947, operates under a managed float exchange rate system supervised by the State Bank of Pakistan. Unlike the fixed-peg Dirham, the Rupee’s value is primarily determined by market forces including supply and demand dynamics, inflation differentials, and balance of payments positions. Pakistan’s economy—anchored by textiles, agriculture, remittances, and an expanding services sector—faces persistent challenges including high inflation rates, substantial external debt obligations, and recurring current account pressures. The Rupee’s performance against stable currencies like the Dirham serves as a key indicator of Pakistan’s economic health and significantly influences the country’s foreign exchange reserve position.

Valuation Criteria and Historical Context

The AED to PKR exchange rate has experienced notable volatility in 2025, with a yearly high of 79.87 PKR reached on March 10 and a low of 75.82 PKR recorded on January 10. Today’s rate of 76.54 positions the Rupee closer to its stronger end of the annual range, suggesting improved economic fundamentals or successful policy interventions by Pakistani authorities.

Multiple interconnected factors drive the AED to PKR valuation dynamics. Pakistan’s inflation trajectory remains paramount—higher domestic inflation erodes purchasing power and weakens the currency against stable counterparts like the Dirham. The State Bank’s interest rate policies, designed to combat inflation while supporting growth, directly influence currency attractiveness to foreign investors.

Global oil prices exert asymmetric pressure on both economies. The UAE benefits from higher oil prices as a major exporter, strengthening its economic position, while Pakistan suffers from increased import bills as a substantial net importer. This divergence can pressure the Rupee downward when oil prices surge.

Remittance flows constitute a critical support mechanism for the Rupee, with the UAE contributing $642.9 million in August 2025 alone, making it the second-largest remittance source for Pakistan. Strong remittance inflows increase dollar supply in Pakistan’s forex market, supporting the Rupee’s value. Political stability and policy consistency also play vital roles—uncertainty typically triggers capital flight and currency depreciation.

Impact on Key Stakeholders

The current exchange rate creates distinct implications for various groups dependent on the AED-PKR corridor. For the approximately 1.7 million Pakistani expatriates working across Emirates, today’s rate of 76.54 means a worker earning 5,000 AED monthly can remit approximately PKR 382,700 to family members in Pakistan. This remittance purchasing power directly affects household budgets, education expenses, and savings accumulation for families dependent on overseas income.

Pakistani businesses importing goods from the UAE—including machinery, electronics, and consumer products—face slightly reduced costs compared to earlier in the year when the Rupee was weaker. Conversely, Pakistani exporters to the UAE, particularly in textiles and agricultural products, may experience marginal competitiveness pressure as their products become relatively more expensive in Dirham terms.

For travelers, the current rate translates to PKR 76,540 required to cover 1,000 AED worth of expenses in Dubai or Abu Dhabi. This affects tourism, business travel, and the substantial transit traffic through UAE airports. Financial market participants view today’s relatively stable rate as a positive signal, though underlying vulnerabilities in Pakistan’s external sector warrant continued vigilance.

Recent Trends and Forward Outlook

Throughout 2025, the AED to PKR rate has primarily traded within a range of PKR 75.8 to PKR 77.2, demonstrating greater stability compared to previous years marked by sharp depreciation episodes. This stability partly reflects Pakistan’s ongoing engagement with international financial institutions and domestic reform efforts aimed at stabilizing the macroeconomic environment.

However, significant challenges persist. Pakistan’s foreign exchange reserves remain under pressure from debt servicing obligations and import requirements. Inflation, while moderating from peak levels, continues above target ranges. The global economic environment, including potential shifts in US Federal Reserve policy affecting dollar strength, could introduce renewed volatility.

The agricultural sector’s performance during the current crop year will influence export earnings and inflation dynamics, both affecting the Rupee’s trajectory. Similarly, developments in Pakistan’s political landscape and policy continuity will be crucial for maintaining investor confidence.

Key Takeaways

Today’s Rate: AED to PKR stands at 76.54 on October 23, 2025
Weekly Performance: Rate has shown minimal volatility between 76.51 and 76.63
Annual Context: Rupee has strengthened from January lows but remains below March highs
Remittance Impact: UAE’s significant contribution of $642.9 million monthly supports Pakistan’s forex position
Outlook: Continued stability depends on sustained reform implementation and favorable external conditions

For Pakistani expatriates in the UAE and businesses engaged in cross-border transactions, monitoring exchange rate movements remains essential for effective financial planning. While today’s rate reflects relative stability, the complex interplay of domestic and international factors means stakeholders should remain informed about evolving economic conditions in both countries.

Note: Exchange rates vary between interbank, open market, and retail rates. The rate mentioned represents an indicative market rate and may differ from rates offered by banks, exchange companies, and money transfer services.