UAE Dirham to Pakistani Rupee Rate Today- May 31, 2025
Karachi, 31 May 2025 – According to the most recent currency market data, the open market exchange rate for the UAE Dirham (AED) stands at 76.44 PKR against the Pakistani Rupee (PKR).
This level of stability follows a period of calm in the AED and PKR exchange rates, supported by consistent remittances and favorable economic conditions in both Pakistan and the UAE.
Understanding the AED-PKR Exchange Rate
The exchange rate between the UAE Dirham and the Pakistani Rupee is influenced by market dynamics as well as interventions by central banks. Since 1997, the Dirham has been fixed to the US Dollar at approximately 3.67 AED/USD, a policy implemented by the UAE Central Bank. This fixed exchange rate helps maintain the Dirham’s parity with the US Dollar, supported by the UAE’s oil-driven economy and its initiatives towards diversification into different sectors.
In contrast, the value of the PKR is managed under a floating exchange rate system. Our analysis shows that it is mostly determined by the demand and supply of foreign currency. The State Bank of Pakistan occasionally steps in to reduce volatility. Factors such as remittances, foreign reserves, trade balance, and inflation—particularly highlighted by the $3.1 billion sent back from the UAE in February 2025—play significant roles in the valuation of the PKR.
The daily conversion of AED to PKR is set by interbank and open market exchange rates. The buying rate is quoted at 76.67 PKR, while the selling rate is around 77.25 PKR from banks and exchange companies, which may also include a nominal additional commission for sellers. This information is refreshed daily at 8:00 AM Pakistan Standard Time and may fluctuate throughout the day in line with market changes.
Effects of Stability
The fixed exchange rate of 76.44 PKR for the UAE Dirham has important implications for Pakistan and the over two million Pakistani workers residing in the UAE. This fixed rate offers them confidence when sending remittances back to their families, benefiting Pakistani family-run businesses. Additionally, it aids trading firms engaged in the import and export of goods like food, apparel, and construction materials between Pakistan and the UAE, thus eliminating risks related to currency fluctuations.
For the economy of Pakistan, a stable exchange rate between the AED and PKR promotes effective remittances, which are crucial to maintaining foreign exchange reserves. Experts argue that this stability is a consequence of sound trade practices, robust reserves, and the absence of speculative pressures. The UAE represents a key economic partner for Pakistan, where remittances help stabilize the PKR. However, the managed floating regime of the PKR exposes it to domestic factors such as inflation and trade deficits. Currency analysts caution that, while the AED-PKR exchange rate is stable at present, market participants should stay alert for potential volatility stemming from external factors like fluctuations in oil prices and geopolitical tensions that could affect the value of the US Dollar and subsequently the Dirham.
Overview of AED and PKR
The UAE Dirham was introduced in 1973 to replace the Qatar and Dubai Riyal as the official currency of the UAE, which is issued and regulated by the UAE Central Bank and divided into 100 fils. It is abbreviated as AED, and its peg to the US Dollar is underpinned by the UAE’s oil reserves, sound fiscal policies, and its position as a global trade hub. The Dirham is widely used across all seven emirates, particularly in major cities such as Dubai and Abu Dhabi and in tourist areas.
The Pakistani Rupee, which came into circulation in 1947, serves as Pakistan’s official currency, subdivided into 100 paise, and is denoted by “₨” or “Rs.” It is governed by the State Bank of Pakistan and operates under a controlled floating exchange rate system. Its value varies based on a number of factors including inflation, trade deficits, and the availability of reserves.
