KARACHI: On April 10, 2025, the UAE Dirham (AED) has remained stable against the Pakistani Rupee (PKR), reaching an exchange rate of 76.42 PKR in the open market.
This development reflects ongoing fluctuations in the forex market, driven by a mix of regional economic dynamics and global trade influences, providing a favorable rate for overseas Pakistanis remitting funds from the UAE.
1 UAE Dirham = 76.42 Pakistani Rupees
The valuation of the AED against the PKR is shaped by several key factors. The UAE Dirham, pegged to the US Dollar at a fixed rate of approximately 3.67 AED to 1 USD, enjoys relative stability due to the UAE’s robust oil-driven economy and prudent fiscal policies.
This peg ensures that the Dirham’s value mirrors the US Dollar’s performance on the global stage. Conversely, the Pakistani Rupee operates under a managed float system, where its value is influenced by supply and demand dynamics in the forex market, alongside interventions by the State Bank of Pakistan. Factors such as remittance inflows, trade balances, and domestic inflation play significant roles in determining the PKR’s strength. The current rate of 76.42 PKR per AED suggests a slight appreciation of the Dirham, possibly linked to increased remittance flows or shifts in Pakistan’s economic conditions.
Market analysts note that the UAE remains a critical economic partner for Pakistan, with millions of Pakistani workers in the Emirates sending home substantial remittances—estimated at $3.1 billion in February 2025 alone, according to the State Bank of Pakistan. These inflows often bolster the Dirham’s demand in Pakistan, impacting its exchange rate.
The UAE Dirham is the official currency of the United Arab Emirates, a federation of seven emirates including Dubai and Abu Dhabi. Introduced in 1973, it replaced the Qatar and Dubai Riyal and is abbreviated with the symbol AED.
The Pakistani Rupee, denoted by PKR or “Rs” has been the official currency of Pakistan since the country’s independence in 1947. While the Dirham’s stability is anchored by the UAE’s economic prowess, the Rupee’s value reflects Pakistan’s broader economic challenges and opportunities. As these two currencies interact, they underscore the deep economic ties between the UAE and Pakistan.
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