AED to PKR: UAE Dirham to Pakistani Rupee Rate- October 29, 2025

KARACHI – The exchange rate between the United Arab Emirates Dirham and the Pakistani Rupee stands at PKR 76.51 on Wednesday, October 29, 2025, maintaining the steady momentum that has characterized the currency pair throughout late October.

This rate offers a stable environment for the millions of stakeholders engaged in cross-border financial activities between Pakistan and the UAE.

The AED to PKR pair continues to trade within a remarkably tight band, with today’s 76.51 rate reflecting the stability that has defined recent market sessions. Over the past week, 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 minimal volatility of less than 0.2% across the period.

Open market rates show the UAE Dirham recorded at Rs 76.80 for buying and Rs 77.80 for selling, while interbank rates remain tighter. This narrow spread reflects healthy market liquidity and efficient forex operations across Pakistan’s financial centers including Karachi, Lahore, and Islamabad.

The sustained stability benefits Pakistani expatriates sending remittances home, businesses planning imports and exports, and travelers budgeting for trips to the Emirates. Predictable exchange rates reduce currency risk and facilitate more accurate financial forecasting.

The Currencies: Two Different Monetary Systems

UAE Dirham: Dollar-Pegged Stability

The United Arab Emirates Dirham represents the official currency of a nation that has transformed itself into a global economic powerhouse. The Central Bank of the UAE maintains a fixed peg of 3.6725 AED per US Dollar, a policy instituted in 1997 that has delivered exceptional exchange rate stability for nearly three decades. This peg effectively anchors the Dirham to the world’s reserve currency, insulating it from many regional economic shocks.

The UAE’s economic success story extends well beyond its substantial petroleum reserves. The nation has aggressively pursued diversification, positioning itself as a hub for technology, finance, tourism, renewable energy, and logistics. Dubai and Abu Dhabi function as premier international financial centers, with the country attracting substantial foreign capital. UAE Vision 2031 outlines ambitious goals for further economic diversification and sustainable development.

This economic sophistication makes the Dirham critically important for South Asian expatriate workers. The UAE hosts approximately 1.5 million Pakistani nationals employed across diverse sectors including construction, hospitality, healthcare, information technology, and professional services. The Dirham’s stability provides predictability for workers sending money to support families back home.

Pakistani Rupee: Market-Driven Flexibility

Pakistan’s Rupee operates in a fundamentally different monetary framework. The State Bank of Pakistan oversees a managed float system where market forces of supply and demand primarily determine the currency’s value, though the central bank intervenes during periods of excessive volatility to maintain orderly market conditions.

The Rupee’s value responds to numerous economic variables including Pakistan’s trade balance, foreign exchange reserve levels, inflation rates, remittance inflows, global commodity prices, and investor sentiment. Pakistan’s economy features textiles and agriculture as foundational sectors, alongside growing services, manufacturing, and technology industries. However, structural challenges persist—elevated inflation, substantial external debt servicing obligations, and recurring balance of payments pressures create ongoing currency headwinds.

The Rupee’s performance against stable currencies like the Dirham serves as an important barometer of Pakistan’s economic health. Currency stability suggests improved macroeconomic management, while persistent depreciation signals underlying challenges requiring policy attention.

Drivers of the Exchange Rate

Today’s 76.51 PKR rate reflects the complex interplay of multiple economic factors:

Inflation Differentials: Pakistan’s inflation rate significantly exceeds the UAE’s near-zero inflation environment, gradually eroding the Rupee’s purchasing power relative to the Dirham. The State Bank’s monetary policy responses—particularly benchmark interest rate adjustments—aim to contain inflation pressures while supporting economic growth, directly influencing currency valuations.

Energy Price Dynamics: Global oil prices impact both economies in opposite directions. The UAE benefits as a major petroleum exporter, with higher crude prices strengthening its fiscal position and economic fundamentals. Pakistan, as a substantial oil importer, faces increased import bills when prices rise, pressuring foreign exchange reserves and potentially weakening the Rupee.

Remittance Flows: Pakistani expatriates in the UAE represent a vital economic lifeline. These workers contribute substantially to Pakistan’s foreign exchange earnings, with remittances supporting household consumption, funding education and healthcare, and bolstering the country’s external account position. Strong remittance inflows increase Dirham and dollar supply in Pakistan’s forex market, supporting Rupee stability.

Trade Balance: Pakistan imports significantly more from the UAE than it exports, creating persistent demand for Dirhams to pay for imported goods including electronics, machinery, consumer products, and food items. This structural trade deficit contributes to downward pressure on the Rupee.

Policy and Political Factors: Investor perceptions of Pakistan’s political stability, policy consistency, and reform implementation influence capital flows and currency demand. Policy clarity and political stability attract foreign investment and support currency values, while uncertainty triggers capital outflows and depreciation pressures.

Historical Performance: The 2025 Journey

The year 2025 has witnessed significant exchange rate volatility, with the AED to PKR pair reaching a low of 75.49 PKR on March 30 and a high of 79.87 PKR on March 10. This dramatic swing represents a range of over 4 PKR—more than 5% fluctuation—highlighting the challenges Pakistan’s economy has faced during the year.

October specifically has seen the rate range between a low of 76.50 PKR on October 24 and a high of 77.30 PKR on October 17, with a monthly average around 76.90 PKR. Today’s 76.51 rate positions near the bottom of October’s range, suggesting modest Rupee strength compared to earlier in the month.

The average exchange rate for 2025 stands at approximately 76.71 PKR, positioning today’s rate marginally below this annual benchmark. The trajectory from March’s extreme weakness to current levels suggests either improved economic fundamentals in Pakistan or successful stabilization efforts by monetary authorities.

Summer months brought continued pressure, with rates climbing before gradually moderating through autumn. Recent weeks have delivered the relative calm that characterizes current trading, providing stakeholders with a more predictable environment for financial planning.

Real-World Implications

Expatriate Workers: At today’s rate of 76.51 PKR per Dirham, a Pakistani worker earning the typical 5,000 AED monthly salary can remit approximately PKR 382,550 to family members in Pakistan. These remittances directly sustain millions of households across Pakistan’s provinces, funding children’s education, medical expenses, housing improvements, and daily necessities. Even minor exchange rate fluctuations translate into meaningful differences when multiplied across millions of monthly remittance transactions.

Business Operations: Pakistani importers purchasing UAE goods—electronics, machinery, construction materials, food products—face costs that fluctuate with exchange rates. Today’s relatively stable rate provides welcome cost predictability for businesses planning inventory purchases and pricing strategies. Pakistani exporters to the UAE, particularly in textiles, agricultural products, and light manufacturing sectors, experience competitiveness impacts as their Rupee-denominated costs translate into Dirham prices for Emirati buyers.

Travel and Tourism: Pakistani citizens traveling to the UAE for business, leisure tourism, family visits, or airport transit face expenses determined by the prevailing exchange rate. At 76.51 PKR per Dirham, a hotel stay or shopping expedition costing 1,000 AED translates to PKR 76,510 for Pakistani travelers. Business travel, medical tourism, and leisure visits all factor this rate into budget planning.

Economic Indicators: Currency market participants and economic policymakers monitor the AED to PKR rate as one indicator of Pakistan’s external sector health. Sustained stability suggests improved macroeconomic fundamentals and policy credibility, while persistent depreciation signals underlying challenges requiring intervention. The relatively stable recent performance provides an encouraging signal, though structural vulnerabilities remain.

Forward Outlook

Market forecasts suggest the AED to PKR rate will remain around 76.54 PKR on October 29 with maximum 77.69 and minimum 75.39, indicating expectations for continued range-bound trading. Analysts anticipate the rate will likely stay within the PKR 75.80 to PKR 77.00 corridor through year-end 2025, assuming no major economic disruptions.

This outlook reflects several assumptions: continued implementation of Pakistan’s economic reform program, stable global financial conditions, consistent remittance inflows from overseas workers, and no significant external shocks. However, multiple factors could introduce volatility including shifts in US Federal Reserve monetary policy affecting dollar strength, international oil price movements, Pakistan’s agricultural sector performance, and domestic political developments.

Pakistan’s foreign exchange reserves face ongoing pressure from debt servicing obligations and import requirements. While inflation has moderated from peak levels, it continues above target ranges. The agricultural sector’s performance affects both export earnings and domestic price pressures. Policy continuity and political stability remain crucial variables for maintaining investor confidence and currency stability.

Key Information Summary

• Current Rate: 76.51 PKR per AED on Wednesday, October 29, 2025
• Weekly Range: Between 76.48 PKR and 76.62 PKR demonstrating minimal volatility
• 2025 Performance: Year opened at 75.82 PKR (January 10), peaked at 79.87 PKR (March 10), currently near annual average
• Monthly Context: October average approximately 76.90 PKR; today’s rate near month’s low
• Open Market Rates: Buying at Rs 76.80, selling at Rs 77.80
• Outlook: Forecasts suggest range-bound trading between 75.80-77.00 PKR through December

For Pakistan’s substantial expatriate community in the UAE and businesses conducting cross-border commerce, today’s rate of 76.51 Pakistani Rupee provides continued stability and predictability. While the Rupee has strengthened considerably from mid-year weakness, stakeholders should maintain awareness of economic and policy developments in both countries that could influence future exchange rate trajectories. The relative calm characterizing recent weeks creates a favorable environment for financial planning, though vigilance remains prudent given the dynamic nature of currency markets.

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Disclaimer: Exchange rates differ across interbank, open market, and retail channels. Rates vary between banks, exchange companies, and money transfer services. The rate cited represents an indicative market rate. Individuals and businesses should verify current rates with authorized dealers before executing foreign exchange transactions.