KARACHI – The UAE Dirham (AED) saw another decline in its buying rate in open market of Pakistan where 1 AED rate stood at 77.10 on Tuesday.
The selling rate of the Dirham also dropped and hovered at Rs77.6, according to the Forex Association of Pakistan.
The AED to PKR exchange rate is monitored regularly as a huge number of Pakistani expats engage in jobs and business in the UAE. The UAE is the second major source of remittances for Pakistan.
Remittance from UAE
As per the latest SBP statistics, overseas Pakistanis residing in the UAE sent $717.2 million in wake of remittances in June 2025, grabbing second top position in the chart of the workers’ remittances as the first spot is held by Saudi Arabia.
Pakistan recorded workers’ remittances inflow of $3.4 billion in June 2025.
According to the data released by the State Bank of Pakistan (SBP) on Wednesday, workers’ remittances increased by 7.9 per cent on a year-on-year basis.
During fiscal year 2024-25, workers’ remittances rose by 26.6 per cent to $38.3 billion as compared with $30.3 billion in 2023-24.
Remittances during June 2025 were mainly sourced from Saudi Arabia ($823.2 million), United Arab Emirates ($717.2 million), United Kingdom ($537.6 million) and United States of America ($281.2 million).
What Happens if PKR Strengthens Against AED
Strengthening the Pakistani rupee against the UAE dirham brings several key advantages. It reduces the cost of imports from the UAE, including oil, machinery, and consumer goods, helping to control inflation.
A stronger rupee also lowers the cost of servicing foreign debt and enhances economic stability. It improves Pakistan’s purchasing power in international markets and can reduce the trade deficit.
Although remittances from UAE-based workers may convert to fewer rupees, the overall economic environment benefits from currency stability. Stronger exchange rates can also boost investor confidence and support better planning for development and infrastructure projects within Pakistan.
