UAE Dirham to Pakistani Rupee Rate Today- June 20, 2025

Karachi/Dubai, June 20, 2025: The UAE Dirham (AED) is holding steady at 77.21 Pakistani Rupees (PKR) in the forex market today, maintaining the same rate as yesterday. This marks a gradual but consistent climb from earlier this week when the AED was valued at 77.04 PKR, up from 77.14 PKR a day prior.

Over the course of this month, the AED has appreciated notably, rising from 76.44 PKR to 76.96 PKR, reflecting a gain of approximately 0.77 PKR.

1 UAE DIRHAM= 77.21 PAKISTANI RUPEE

Valuation Process of AED Against PKR

The exchange rate between the UAE Dirham and Pakistani Rupee is determined in the foreign exchange (forex) market, where currencies are traded based on supply and demand dynamics. The AED is pegged to the US Dollar (USD) at a fixed rate of 3.6725 AED to 1 USD, meaning its value is inherently tied to the performance of the USD. The PKR, a floating currency, fluctuates based on market forces, including trade balances, foreign investment, and macroeconomic policies in Pakistan.

The recent appreciation of the AED against the PKR is partly due to the USD’s strength in global markets and Pakistan’s economic challenges, such as inflation and trade deficits, which have weakened the PKR. Forex traders, banks, and financial institutions use real-time data and economic indicators to set daily exchange rates, with the State Bank of Pakistan providing an indicative rate while allowing market-driven adjustments.

UAE’s Robust Economic Policies

The UAE’s economic policies have significantly contributed to the stability and strength of the AED. The country’s diversified economy, driven by sectors such as tourism, real estate, and renewable energy, has reduced its reliance on oil revenues. Strategic initiatives like the UAE Vision 2021 and the Dubai Plan 2021 have bolstered investor confidence, attracting foreign direct investment (FDI) and supporting currency stability.

The UAE’s prudent fiscal policies, including low public debt and substantial foreign exchange reserves, further reinforce the AED’s peg to the USD. The Central Bank of the UAE maintains this peg through active market interventions, ensuring the Dirham remains a reliable currency for international trade and remittances, particularly in regions like South Asia, where Pakistani workers form a significant portion of the UAE’s expatriate workforce.

Impact of AED’s Rise Against PKR

The AED’s appreciation against the PKR has mixed implications. For Pakistani expatriates in the UAE, this is positive news, as their remittances in AED now convert to more PKR when sent home. In 2024, remittances from the UAE to Pakistan were a critical source of foreign exchange, contributing over $3 billion annually, according to State Bank of Pakistan estimates. A stronger AED enhances the purchasing power of these remittances, supporting families and local economies in Pakistan.

However, for Pakistani importers dealing with UAE-based suppliers, the rising AED increases the cost of goods and services, potentially fueling inflation. This could strain Pakistan’s trade balance, as imports from the UAE, including petroleum products and consumer goods, become more expensive. Conversely, Pakistani exporters may benefit, as their goods become relatively cheaper in AED terms, potentially boosting trade competitiveness.

About AED and PKR

The UAE Dirham (AED), introduced in 1973, is the official currency of the United Arab Emirates. Pegged to the US Dollar, it is abbreviated with the symbol “د.إ” or “AED” and is widely used in the UAE’s vibrant economy, which spans trade, finance, and tourism.

The Pakistani Rupee (PKR), denoted by the symbol “₨”, is the official currency of Pakistan, managed by the State Bank of Pakistan. As a floating currency, its value fluctuates based on economic conditions, making it sensitive to domestic and global market trends.