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

Karachi, 20 May 2025 – The open market exchange rate of the UAE Dirham (AED) against the Pakistani Rupee (PKR) has stabilized at 76.67 PKR, based on the latest updates from the currency market.

The stabilization is thanks to a peaceful spell for the AED-PKR exchange rate, backed by stable remittance inflows and positive economic trends in both Pakistan and the UAE.

AED-PKR Exchange Rate Valuation Process

The exchange rate of the UAE Dirham against the Pakistani Rupee depends on market forces and central bank actions. The Dirham is pegged against the US Dollar at about 3.67 AED/USD, a system that has been maintained by the UAE Central Bank since 1997. This peg ties the movements of the Dirham to the US Dollar, bolstered by the oil-based economy of the UAE and diversified investments.

1 UAE DIRHAM = 76.67 PAKISTANI RUPEES

Conversely, PKR value is managed under a floating exchange rate, which is largely determined by foreign exchange market demand and supply, with the State Bank of Pakistan intervening from time to time to mitigate volatility. Foreign reserves, trade balance, inflation, and remittances, including the $3.1 billion transfer from the UAE in February 2025, affect the value of the PKR.

The AED to PKR exchange rate is established every day in accordance with both interbank and open market rates. Banks and currency exchange houses fix the buying rate at 76.67 PKR, whereas the selling rate remains around 77.25 PKR, typically with a small premium for sellers. The exchange rate is usually refreshed at 8:00 AM Pakistan Standard Time and might change during the day due to market forces.

Impact of Stability

Fixed exchange rate of the AED to 76.67 PKR has significant implications for Pakistan and the people of Pakistan working in the UAE. For more than two million Pakistanis working in the UAE, a fixed exchange rate creates stability in remittances, which helps family businesses in Pakistan invest. It also benefits trade companies dealing in food products, textiles, and building materials between the two nations by reducing currency risks.

For the economy of Pakistan, maintaining a stable AED-PKR exchange rate facilitates the movement of remittances, a significant component of foreign exchange reserves. This equilibrium, according to specialists, is brought about by cautious trading habits, sound reserves, and minimal speculative pressure. The UAE continues to be a key financial assistance to Pakistan, and remittances have a major contribution towards stabilizing the PKR. However, the managed float of the PKR exposes it to local concerns including inflation and trade deficits. Currency analysts warn that although the AED-PKR rate is presently stable, investors and traders need to remain vigilant to movements in global oil prices and geopolitical events that may affect the US Dollar and, in turn, the Dirham.

Overview of AED and PKR

The UAE Dirham, established in 1973 to replace the Qatar and Dubai Riyal, is the official currency of the UAE issued by the UAE Central Bank and subdivided into 100 fils. Abbreviated AED, its peg against the US Dollar is guaranteed by the UAE’s oil riches, sound fiscal practices, and position as a world trading hub. The Dirham is widely utilized across the seven emirates, such as Dubai and Abu Dhabi, and numerous resort destinations.

The Pakistani Rupee, created in 1947, is the country’s official currency, subdivided into 100 paise, and symbolized by “₨” or “Rs.” It is printed by the State Bank of Pakistan and functions with a controlled floating system, acting in response to inward forces like inflation, trade deficit, and reserves available. Remittances from the UAE have a major impact on the stability of the PKR. The fixed exchange rate of 76.67 PKR per AED reflects the country’s solid economic performance.