KARACHI – UAE Dirham to Pakistani rupee rate registered downward trend as it lost three paisa in open market of Pakistan as it stood at Rs76.28 on Thursday, 20 March 2025.
The selling rate for the UAE currency AED in Pakistan also weakened as it is available for Rs76.64 in local currency market, according to Forex Association of Pakistan (FAP).
Dirham is the official currency of the United Arab Emirates. Overseas Pakistanis commonly need to convert the currency of their host country into Pakistani currency and this process is called currency exchange.
Currency Exchange Rates
Currency exchange rates are affected by a multiple factors such as economic situation of a country, demand level, and market sentiments. They reflect how much currency of a country is strengthened as compared to other country.
Following are the key factors that influence currency exchange rates:
Supply and Demand
The basic law of supply and demand plays a major role in determination of exchange rates. If more people want a currency, its value rises; if demand is lower, its value falls.
Foreign Exchange (Forex) market
The trends in Forex market is considered the largest and most liquid market in the world, and rates fluctuate based on how much traders are willing to buy or sell a currency.
Inflation Rates
Countries with lower inflation rates tend to have stronger currencies, as lower inflation means purchasing power is more stable. High inflation usually put pressure on a currency.
The other factors include political stability, economic performance, trade balance, central bank’s policies and others.
Remittances from UAE to Pakistan
More than two million Pakistanis reside in the Gulf country where they are engaged in various employments and businesses in the country.
Pakistan received $3.1 billion in wake of remittances from overseas Pakistani workers in February 2025, registering an increase of 3.8% as compared to previous month of January 2025, according to data released by the State Bank of Pakistan (SBP).
Remittances increased by 38.6% on year-on-year basis, compared to $2.25 billion recorded in the same month last year.
The inflow of remittances from the UAE surged by 4.94% on a monthly basis as Pakistan received $652.2 million in February, compared to $621.5 million in January.
On a yearly basis, remittances increased by 69.49%, as compared to $384.8 million recorded in the same month last year.
