KARACHI — The UAE Dirham (AED) traded higher against the Pakistani Rupee (PKR) on Tuesday, with the buying rate rising by 7 paisas to Rs77.11, while the selling rate increased to Rs77.84, according to forex.pk.
Currency exchange between Pakistan and the UAE is crucial due to strong economic and labor ties. The UAE hosts a large Pakistani expatriate community, which sends billions of dirhams back home annually as remittances. These remittances are vital for supporting Pakistan’s economy and boosting its foreign exchange reserves.
The PKR-AED exchange rate directly impacts the amount of money Pakistani families receive from abroad. A favorable rate allows expatriates to send more value, aiding household expenses, education, and investments in Pakistan.
In addition, many Pakistani businesses import goods like electronics, petroleum products, and construction materials from the UAE. Exchange rate fluctuations affect import costs and retail prices. Tourism and travel between the two countries also rely on stable currency rates.
In May 2025, overseas Pakistanis in the UAE sent $754.2 million in remittances, making the UAE the second-largest source after Saudi Arabia.
Overall, workers’ remittances to Pakistan grew by 28.8% in the first eleven months of the 2024-25 fiscal year, reaching nearly $35 billion from July to May. Monthly inflows in May rose to $3.69 billion.
The State Bank of Pakistan reported that during July-May FY25, remittances totaled $34.9 billion, up from $27.1 billion in the same period last year. May 2025 alone saw remittances increase by 16% from April and 13.7% compared to May 2024, highlighting steady growth in foreign inflows.
