Kuwait City/Karachi – May 27, 2025 – The Kuwaiti Dinar (KWD) exchange rate versus the Pakistani Rupee (PKR) has been steady, quoting at 913.99 PKR, according to open market sources.
This minor variation in the exchange rate has encouraged debate among traders and analysts regarding the potential drivers of its valuation and the potential effect on trade and remittances between the two countries.
One Kuwaiti Dinar is equal to 913.99 Pakistani Rupees.
Understanding the KWD-PKR Exchange Rate
The market rate for the KWD against the PKR is a function of both economic and market factors. The Kuwaiti Dinar, which is one of the strongest currencies in the world, is fixed against a basket of currencies and not allowed to float, giving it a level of stability. This peg is maintained by the Central Bank of Kuwait to provide a stable value for the currency against major world currencies.
Conversely, the Pakistani Rupee is managed floating, where its value is determined by demand and supply in the foreign exchange market, with occasional intervention by the State Bank of Pakistan to control volatility. Trade balances, foreign exchange reserves, inflation rates, and interest rate differentials between Pakistan and Kuwait influence the KWD-PKR exchange rate significantly.
The slight fall of the Kuwaiti Dinar to 913.99 PKR from 916 observed yesterday indicates marginal changes in market sentiments, which may be due to alterations in Pakistan’s foreign exchange reserves or variations in Pakistani demand for the dinar. Traders have observed that minor deviations like this are inevitable and tend to consolidate fast considering Kuwait’s strong economic fundamentals.
Implications for Trade and Remittances
The minimal depreciation of the KWD in relation to the PKR affects the economy of transactions between Kuwait and Pakistan. Kuwait has a large number of Pakistani expatriates, and remittances are a backbone of Pakistan’s economy. A weaker KWD implies that Pakistani laborers in Kuwait may experience a small decline in the worth of their remittances when exchanged into PKR. For example, a 100 KWD remittance per month, which was previously valued at 91,600 PKR, currently stands at 91,399 PKR—a small difference that might add up over time for families dependent on such transfers.
As far as bilateral trade is concerned, the effect is expected to be negligible because of the minor nature of the decline. Pakistan receives exports from Kuwait in the form of oil products, and exports textiles, agro-products, and labor services to Kuwait. A stable exchange rate guarantees a predictable cost of trade, and experts believe that the prevailing rate of 913.99 PKR is not expected to cause any considerable perturbation in established trends of trade.
Summary of KWD and PKR
The Kuwaiti Dinar (KWD) is the official currency of Kuwait, which was adopted in 1961 as a replacement for the Gulf Rupee. Renowned for its premium value, the KWD is supported by the sizeable oil reserves and stable economic policies of Kuwait and ranks among the world’s most esteemed currencies.
The Pakistani Rupee (PKR), created in 1948, is the official currency of Pakistan. Its exchange rate is determined by the country’s economic performance, foreign reserves, and international market conditions. In spite of constant fluctuations, the PKR remains an important medium of Pakistan’s economy, backed by remittances and exports.
When the KWD-PKR exchange rate stabilizes, market players will observe the economies of the two countries to predict future trends.
