UAE Dirham to PKR Exchange Rate Shifts Amid Trade War
The exchange rate fluctuations have significant implications for remittances and trade between the UAE and Pakistan, with the Pakistani Rupee's surge and the UAE Dirham's stability playing a crucial role in shaping the economic relationship between the two nations.
The UAE Dirham has lost value against the Pakistani Rupee, with an exchange rate of Rs76.35 on April 17, 2025, and a selling rate of Rs76.85 in local markets, as the global trade war impacts currency markets.
The Pakistani Rupee has experienced a significant surge, reaching an all-time high of $4.1 billion in March 2025, with a 37.3% year-over-year increase and a 29.8% month-over-month rise. This growth is largely attributed to increased remittances from countries like the UAE, which reached a record $842 million in March 2025, representing a 28% increase from February 2025 and a 54% increase from March 2024.
The stability of the UAE Dirham against the Pakistani Rupee, currently at PKR 76.37, is driven by global trade patterns and regional economic dynamics. This stability is beneficial for Pakistani expats in the UAE, who send significant remittances to Pakistan, with $3.1 billion received in February 2025. The AED's peg to the US Dollar ensures its long-term stability, thanks to the UAE's oil-rich economy and diversified investments.
The current exchange rate offers reassurance to remitters and signals a continued interdependence between the UAE's stable economy and Pakistan's evolving financial landscape. As the global trade war continues to impact currency markets, the Pakistani Rupee's growth and the UAE Dirham's stability will be crucial in maintaining economic ties between the two countries.