The Emirati dirham stood at about Rs76.06 in the open market on Friday, almost unchanged from the previous day.
Over the past several months, the exchange rate between the dirham and the Pakistani rupee has remained within a narrow band of Rs76.00 to Rs76.50.
Economists said the chief reason for the dirham’s stability lies in its fixed rate with the US dollar. Since 1997, the dirham has been pegged at 3.6725 against the dollar, limiting sudden fluctuations.
The Pakistani rupee, meanwhile, has also drawn support from foreign exchange reserves and a steady inflow of remittances.
Figures show that more than 1.5 million Pakistanis reside in the United Arab Emirates and regularly send money home.
Monthly remittances from the UAE to Pakistan usually exceed $700 million, assisting households in meeting expenses related to education, healthcare and other basic needs.
Market assessments suggest that during the first half of 2026 the dirham–rupee exchange rate is likely to remain largely between Rs75.80 and Rs77.00, while in March and April it may hover around Rs76.10 to Rs76.60.
