The UAE Dirham (AED) edged up to 76.77 Pakistani Rupees (PKR) on Wednesday (August 20, 2025) at 8:32 PM PST, marking a 0.01 PKR increase from the previous rate of 76.76 PKR, according to financial sources tracking interbank and open market movements.
Recent Trends
The Dirham has shown resilience in recent months. In June 2025, it gained 0.81 PKR — climbing from 76.44 to 77.25 — and peaked at 77.61 PKR on July 1. Analysts credit the UAE’s diversified economy and global financial reputation for this stability.
AED and PKR Explained
- AED (UAE Dirham): In use since 1973, the currency is pegged to the U.S. dollar at 3.6725 AED per USD, ensuring consistency in trade and investment.
- PKR (Pakistani Rupee): A floating currency since 1948, the PKR is managed by the State Bank of Pakistan and remains sensitive to domestic and global economic pressures.
Impact on Pakistan
For millions of Pakistani workers in the UAE, a firm Dirham strengthens remittances, which reached $717.2 million in June 2025, making the UAE Pakistan’s second-largest remittance source after Saudi Arabia. These inflows play a vital role in household incomes and local economies, particularly in Punjab and Sindh.
On the flip side, the elevated AED-PKR rate increases the cost of UAE imports — from consumer goods to industrial supplies — and adds pressure to Pakistan’s trade balance. With the Dirham tied to the U.S. dollar, debt servicing in both USD and AED also becomes more expensive.
Outlook
Experts suggest Pakistan must focus on boosting exports and stabilizing the PKR to balance the economic effects. Meanwhile, the UAE’s strong policies in technology, renewable energy, tourism, and trade continue to reinforce the Dirham’s global standing.
