Karachi/Dubai-July 29, 2025: The value of the UAE Dirham against the Pakistani Rupee has fallen to 77.06 PKR as of 7:10 PM Pakistan time today, representing a decrease of 0.59 PKR from the previous day’s closing rate of 77.65 PKR.AED to PKR- Daily UpdatesThis information comes from reliable financial data sources monitoring both interbank and open market exchange rates.Despite today’s drop, the UAE Dirham showed strong performance in June 2025, gaining 0.81 PKR throughout the month. It started June at 76.44 PKR and finished at 77.25 PKR, reaching its highest point of 77.6111 PKR on July 1st. This demonstrates the UAE’s solid economic foundation and its position as a major player in global finance.Effects on Pakistan’s EconomyThe current exchange rate movement has mixed implications for Pakistan. Pakistani companies purchasing goods from the UAE benefit from today’s lower rate, as their import costs have decreased slightly. However, the Dirham’s overall strength throughout recent months continues to impact Pakistan’s economic situation significantly.Pakistani workers living in the UAE represent a crucial economic link between the two countries. The State Bank of Pakistan reports that remittances from the UAE totaled $717.2 million in June 2025, making it Pakistan’s second-largest source of foreign remittances after Saudi Arabia. These money transfers support millions of families and stimulate economic growth, particularly in provinces like Punjab and Sindh.On the flip side, the strong Dirham makes UAE products more expensive for Pakistani consumers and businesses, affecting everything from luxury items to essential goods. Since the Dirham is tied to the US Dollar, this relationship may continue to strain Pakistan’s trade deficit and increase the cost of servicing foreign debt denominated in USD or AED.Financial experts suggest that Pakistan should focus on making its exports more competitive while implementing monetary strategies to strengthen the Pakistani Rupee.Currency BackgroundThe UAE Dirham has served as the Emirates’ official currency since 1973 and maintains a fixed exchange rate of 3.6725 AED per US Dollar, managed by the UAE’s Central Bank. This stable peg provides predictability and reliability for international business transactions across all seven emirates.In contrast, the Pakistani Rupee, which became Pakistan’s official currency in 1948, operates under a flexible exchange rate system. The State Bank of Pakistan oversees the currency, but its value fluctuates based on domestic economic factors, international market conditions, and political developments.