UAE Dirham to Pakistani Rupee Rate Today- May 21, 2025

Karachi, 21 May 2025 – The UAE Dirham (AED) open market exchange rate against the Pakistani Rupee (PKR) has stabilized at 76.44 PKR, according to the latest information from the currency market.

The stability is due to a quiet period for the AED-PKR exchange rate, supported by stable remittance flows and favorable economic conditions in Pakistan and the UAE.

AED-PKR Exchange Rate Valuation Process

The UAE Dirham’s exchange rate against the Pakistani Rupee is based on market forces and central bank intervention. The Dirham is pegged against the US Dollar at around 3.67 AED/USD, a system in place since 1997 by the UAE Central Bank. This peg binds the Dirham’s movement to the US Dollar with support from the UAE’s oil-based economy and investment diversification.

1 UAE DIRHAM = 76.44 PAKISTANI RUPEES

On the other hand, PKR value is controlled under a floating exchange rate, which is primarily driven by foreign exchange market demand and supply, with the State Bank of Pakistan intervening occasionally to smooth volatility. Foreign reserves, trade balance, inflation, and remittances, including the $3.1 billion received from the UAE during February 2025, influence the value of the PKR.

The exchange rate of AED to PKR is determined daily in reference to both open market and interbank rates. The buying rate is fixed by banks and currency exchange houses at 76.67 PKR, while the selling rate is simply about 77.25 PKR, usually with a minor premium for sellers. The exchange rate typically updates at 8:00 AM Pakistan Standard Time and may alter throughout the day based on market forces.

Effect of Stability

Fixed exchange rate of the AED to 76.44 PKR holds great consequences for Pakistan and Pakistanis working in the UAE. For over two million Pakistanis employed in the UAE, a fixed exchange rate provides stability in remittances, which allows family enterprises in Pakistan to invest. It also favors trade companies trading food items, textiles, and construction materials between the two countries by minimizing currency risks.

For the Pakistani economy, a stable AED-PKR exchange rate makes it easy for remittances to flow freely, which is an important part of foreign exchange reserves. This balance, according to experts, is achieved through prudent trading practices, good reserves, and low speculative pressure. The UAE remains a principal source of financial support for Pakistan, and remittances have a dominant role in stabilizing the PKR. Still, the managed float of the PKR makes it vulnerable to domestic issues such as inflation and trade deficits. The currency commentators caution that while the AED-PKR rate is currently flat, investors and traders must be watchful for fluctuations in global oil prices and geopolitical developments affecting the US Dollar and subsequently the Dirham.

Overview of AED and PKR

The UAE Dirham, created in 1973 to become the replacement for the Qatar and Dubai Riyal, is the UAE’s official currency released by the UAE Central Bank and divided into 100 fils. Abbreviated AED, its US Dollar peg is secured by the UAE’s wealth in oil, prudent fiscal policies, and status as a global trading center. The Dirham is extensively used throughout the seven emirates, including Dubai and Abu Dhabi, and various resort spots.

The Pakistani Rupee, established in 1947, is the currency of the country, divided into 100 paise, and represented by “₨” or “Rs.” The State Bank of Pakistan prints it and operates under a controlled floating system, reacting according to inward pressures such as inflation, trade deficit, and available reserves. Remittances from the UAE significantly influence the stability of the PKR. The stable exchange rate of 76.67 PKR for AED indicates the nation’s strong economic performance.