Dirham Strengthens Against Rupee, Hits 77.47 PKR
The UAE Dirham (AED) has continued its upward trajectory, reaching 77.47 Pakistani Rupees (PKR) as of today. This rise follows a strong performance in June, where the Dirham appreciated by 0.81 PKR, moving from 76.44 PKR at the beginning of the month to 77.25 PKR by the end.
AED-PKR Movement Reflects UAE’s Economic Momentum
The sustained rise in the Dirham underscores the UAE’s robust economic strategy, driven by diversification, technological advancement, and growing trade and tourism sectors. With the AED pegged to the US Dollar at a fixed rate of 3.6725, the currency benefits from global investor confidence and economic stability.
Impact on the Pakistani Economy and Expats
For Pakistan, the strengthening Dirham brings mixed outcomes. On one hand, it increases the value of remittances sent by over a million Pakistani expatriates working in the UAE. In May 2025, remittances from the UAE totaled $754.2 million, making the UAE the second-largest source of foreign remittances for Pakistan after Saudi Arabia.
These remittance inflows play a vital role in supporting households and local economies across Pakistan.
However, the higher exchange rate also means costlier imports from the UAE, affecting both businesses and consumers. From electronics to essential goods, many Pakistani sectors rely on Emirati products. Additionally, with AED tied to the USD, this appreciation raises the cost of debt servicing and puts further pressure on Pakistan’s trade balance.
Experts Urge Policy Response
Economists warn that continued weakness in the PKR could deepen Pakistan’s import bill and widen its current account deficit. Authorities are being urged to implement policies that support export growth and currency stabilization to counterbalance the effects of a stronger Dirham.
UAE’s Economic Strategy Paying Off
The Dirham’s performance is bolstered by the UAE’s ongoing transformation into a diversified, innovation-driven economy. Dubai and Abu Dhabi have become global hubs for trade, finance, and tourism, with large-scale investments in renewable energy, AI, and infrastructure.
This forward-thinking approach has enhanced the UAE’s position as a global financial leader, and the Dirham’s stability further cements investor trust.
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