Karachi/Dubai- October 2, 2025: The UAE Dirham exchange rate against the Pakistani Rupee stands at 76.60 PKR today, reflecting relative stability in the bilateral currency relationship between Pakistan and the United Arab Emirates, one of Pakistan’s key economic partners in the Gulf region.
Today’s rate of 76.60 PKR per UAE Dirham represents a moderately stable position compared to recent historical trends. The exchange rate has shown minimal volatility over the past week, fluctuating between 76.61 PKR and 76.62 PKR, demonstrating a tight trading range that signals market confidence in both currencies.
When examining the broader historical perspective, today’s rate positions itself strategically within the year’s trading range. Throughout 2025, the AED to PKR exchange rate has averaged approximately 76.59 PKR, with the highest peak reaching 79.87 PKR earlier this year. Meanwhile, 2024 saw an average rate of 75.83 PKR, with the year’s highest point at 76.77 PKR recorded on January 2, 2024.
This year-over-year comparison reveals a modest appreciation trend, with the Dirham gaining approximately 1 PKR (or 1.29%) in value relative to the Pakistani Rupee over the past twelve months. The current rate of 76.60 PKR sits comfortably near the 2025 average, suggesting equilibrium in market forces affecting both currencies.
The stability of the UAE Dirham continues to be underpinned by the Emirates’ prudent economic policies and visionary diversification strategy. The UAE Central Bank recently raised its economic growth forecast for 2025 from 4.4% to 4.9%, driven predominantly by robust non-oil sector performance that demonstrates the success of the country’s long-term economic transformation.
The UAE’s economic diversification strategy has emerged as a model for resource-rich nations globally. By systematically reducing dependence on hydrocarbon revenues, the Emirates has cultivated thriving sectors in logistics, financial services, tourism, construction, and transportation. This strategic pivot has created a resilient, knowledge-based economy that can withstand global oil price fluctuations while maintaining currency stability.
The non-oil sector’s projected expansion of 4.9% in 2025 reflects the UAE’s successful transition toward a more balanced economic structure. Key initiatives include establishing advanced logistics frameworks, enhancing the knowledge economy, and positioning the UAE as a global financial and commercial hub. These policies have attracted substantial foreign investment, strengthened the Dirham’s fundamentals, and created a stable currency environment.
Remittance Flows and Overseas Pakistanis
The UAE hosts one of the largest overseas Pakistani communities, estimated at over 1.7 million workers and professionals. At today’s rate of 76.60 PKR, every 1,000 AED remitted translates to 76,600 PKR for families in Pakistan. With the rate showing stability compared to the 2025 average, remittance recipients are experiencing predictable conversion values, which aids in household financial planning.
The slight appreciation of the Dirham against the Rupee over the past year means Pakistani expatriates’ earnings have marginally increased in PKR terms. However, this also reflects underlying pressures on the Pakistani Rupee, which policymakers must address through strengthening Pakistan’s own economic fundamentals.
Trade and Business Implications
The UAE ranks among Pakistan’s top trading partners, with bilateral trade exceeding $10 billion annually. Today’s exchange rate influences this relationship in multiple ways:
Import Costs: Pakistani businesses importing goods from the UAE—including machinery, electronics, and consumer products—face relatively stable pricing. The consistent exchange rate allows importers to forecast costs accurately and maintain supply chain efficiency.
Export Competitiveness: Pakistani exporters to the UAE market benefit from predictable currency conversion, enabling better pricing strategies. Sectors such as textiles, agricultural products, and light engineering goods can plan inventory and production with reduced currency risk.
Investment Flows: The stable AED-PKR relationship encourages UAE investors to explore opportunities in Pakistan’s market. Currency stability reduces forex risk, making Pakistani assets more attractive to Gulf investors looking for regional diversification.
Consumer and Travel Impact
For Pakistani citizens planning travel to the UAE—whether for tourism, business, or visiting family—today’s rate of 76.60 PKR per Dirham provides a clear benchmark for budgeting. While the Dirham has appreciated slightly over the year, the rate remains within a manageable range for travelers, though it does represent a modest increase in travel costs compared to early 2024.
The exchange rate also affects Pakistani students pursuing higher education in UAE institutions, medical tourists seeking healthcare services in Dubai and Abu Dhabi, and business travelers attending conferences and exhibitions in the Emirates.
Broader Economic Indicators
PKR Challenges and Policy Considerations
The gradual depreciation of the Pakistani Rupee against the Dirham—and other major currencies—reflects ongoing economic challenges facing Pakistan. These include:
- Inflation pressures requiring monetary tightening
- Current account dynamics affecting forex reserves
- Debt servicing obligations creating pressure on the currency
- Political stability concerns influencing investor confidence
Pakistan’s economic managers must focus on strengthening export performance, attracting foreign direct investment, and maintaining adequate foreign exchange reserves to stabilize the Rupee’s value.
Regional Currency Dynamics
The AED remains pegged to the US Dollar at a fixed rate of 3.6725 AED per USD, providing an anchor of stability. This peg, maintained since 1997, means that fluctuations in the AED-PKR rate primarily reflect changes in the Rupee’s value against the Dollar rather than independent Dirham movements.
Understanding this relationship is crucial for Pakistani policymakers and businesses, as it emphasizes the importance of managing Pakistan’s external account position and maintaining confidence in the domestic currency.
Outlook and Market Sentiment
Financial analysts suggest the AED-PKR exchange rate will likely maintain its current trajectory in the near term, barring significant economic shocks in either country. The UAE’s strong economic fundamentals and Pakistan’s ongoing IMF program compliance provide a framework for relative stability.
However, market participants should monitor several factors:
- Pakistan’s inflation trajectory and State Bank policy responses
- UAE’s continued economic diversification and growth momentum
- Global oil prices affecting both economies differently
- Geopolitical developments in the broader Middle East and South Asia region
- Remittance flow patterns from the UAE to Pakistan
Today’s UAE Dirham rate of 76.60 PKR represents more than just a numerical exchange value—it reflects the intricate economic relationship between two nations bound by geography, trade, investment, and millions of personal connections through the Pakistani diaspora in the Emirates.
The UAE’s commendable economic management, characterized by strategic diversification, fiscal prudence, and forward-thinking policy frameworks, continues to support the Dirham’s strength. For Pakistan, maintaining competitive exchange rates while ensuring macroeconomic stability remains a priority as the country seeks to enhance its position in regional trade and attract Gulf investment.
As both nations navigate global economic uncertainties, the AED-PKR exchange rate will remain a vital indicator of bilateral economic health and a practical metric affecting millions of individuals and businesses across both countries.