Karachi, June 23, 2025 – The Bahraini Dinar (BHD) is exchanging at a steady rate of 751.23 Pakistani Rupee (PKR) today, remaining unchanged since June 18 when it was 751.34 PKR.
This is after a steady rise previously this month, with the BHD rising from 744.79 PKR on June 8, registering a significant 0.88% upsurge, to 748.55 PKR on June 11, and 749.72 PKR on June 13, as per information from major currency exchanges.
1 Bahraini Dinar = 751.23 Pakistani Rupee
Introduction to BHD and PKR
The Bahrain Dinar, the national currency of Bahrain since 1965, is one of the world’s highest-valued currencies, divided into 1,000 fils and issued by the Central Bank of Bahrain. Its code symbol is BHD. The Pakistani Rupee, Pakistan’s national currency, is issued by the State Bank of Pakistan and divided into 100 paisa, although paisa coins are no longer in circulation. The PKR is widely accepted all over Pakistan, from big cities such as Karachi to rural areas.
Valuation Mechanism
The valuation of the Bahraini Dinar is rooted in its fixed exchange rate to the U.S. Dollar (USD) at 1 Bahraini Dinar per 2.659 USD, which is sustained by the Central Bank of Bahrain. The peg allows for limited volatility, with the strength of the BHD closely correlated with international USD flows and Bahrain’s solid economic fundamentals, especially its oil and gas exports. Increasing oil prices worldwide, as witnessed in the recent past, further strengthen Bahrain’s finances, underpinning the value of the dinar.
Conversely, the PKR is under a managed float system, whereby its exchange rate is decided based on market forces of supply and demand with periodic interventions by the State Bank of Pakistan to keep excessive fluctuations in check. The PKR is under downward pressure owing to the economic woes of Pakistan, such as high inflation, an ongoing trade deficit, and low foreign exchange reserves. The exchange rate of BHD-PKR captures these dynamics, with gains in the BHD being mostly fueled by PKR weakness instead of substantial changes in Bahrain’s currency.
Economic Impact
The BHD’s constant appreciation against the PKR has serious implications for Pakistan-Bahrain economic relations. Bahrain is home to a large number of Pakistani expatriates, whose remittances in BHD are a major boost to Pakistan’s economy. An appreciating BHD raises the PKR value of these remittances, enhancing the buying power of the recipient families in Pakistan. It does increase the price of Pakistani exports to Bahrain but can affect trade competitiveness.
For Bahraini investors and businesses dealing in Pakistan, the increasing BHD-PKR rate raises the value of transactions, impacting travel costs and import prices. The opposite is true for Pakistani travelers and businesses dealing in Bahrain. The path of the exchange rate will depend on international oil prices, Pakistan’s foreign reserves, and possible International Monetary Fund (IMF) assistance for Pakistan’s economy. Traders are also monitoring U.S. economic data due to the BHD’s USD linkage and Pakistan’s political stability for near-term cues.
Outlook
The stability of the Bahraini Dinar at about 751 PKR from June 18 indicates market trust in Bahrain’s currency backed by its economic stability and USD peg. Nevertheless, the vulnerability of the PKR to domestic and international economic pressures, such as increasing commodity prices and geopolitics, may fuel further movements in the BHD-PKR pair. Experts suggest that businesses and individuals keep themselves updated on exchange rate movements to best handle these dynamics.
