Kuwait City/Karachi – June 3, 2025 – According to open market sources, the value of the Kuwaiti Dinar (KWD) has not changed against the Pakistani Rupee (PKR) at 913.99 PKR.
The minor revision in the exchange rate has drawn comments from analysts and traders about the potential influencers of its value and how it will impact trade and remittances between the two countries.
One Kuwaiti Dinar is equal to 913.99 Pakistani Rupees.
Understanding the KWD-PKR Exchange Rate
The exchange rate of KWD against PKR is determined by economic and market conditions. The Kuwaiti Dinar, listed among the strongest currencies in the world, is pegged to a basket of currencies and does not float. This helps to maintain some stability. The Central Bank of Kuwait has this peg in place to ensure a consistent value of the currency relative to major currencies of the world.
On the other hand, the Pakistani Rupee is floating in nature, with its price being established by supply and demand in the foreign exchange market, even though the State Bank of Pakistan takes charge from time to time to stabilize it. Foreign currency reserves, balance of trade, inflation levels, as well as differences in interest rates between Kuwait and Pakistan, greatly influence the KWD-PKR exchange rate.
The slight fall of the Kuwaiti Dinar from 916 to 913.99 PKR yesterday is an indication of minor changes in the market mood as a result of adjustments in Pakistan’s foreign reserves or shifts in demand for the dinar from Pakistan. Traders observed that such minor differences are unavoidable and should normalize very fast as a result of the strong economic fundamentals of Kuwait.
Effects on Trade and Remittances
The slight depreciation of the KWD against the PKR has implications for the economic activities of Kuwait and Pakistan. Remittances play a critical role in the economy of Pakistan, with a significant number of Pakistani expatriates residing in Kuwait. The weaker KWD means that Pakistani labor working in Kuwait is likely to face a slight decrease in the value of their remittances when converted into PKR. For instance, a monthly 100 KWD remittance that would earlier buy 91,600 PKR can today be exchanged for 91,399 PKR—such a minor change may have a compelling influence in the long run on those dependent on such remittances.
With respect to bilateral trade, there is likely to be a negligible impact because of the marginal nature of the drop. Kuwait exports oil products to Pakistan and imports textiles, agricultural goods, and labor services from Pakistan. A stable exchange rate guarantees uniform trading costs, and experts are of the view that the present rate of 913.99 PKR will not significantly alter trade trends.
Summary of KWD and PKR
The Kuwaiti Dinar (KWD) is the official currency of the country of Kuwait, established in 1961 as a replacement for the Gulf Rupee. With its high value, KWD is supported by Kuwait’s enormous oil reserves and stable economic policy, placing it among the world’s most appreciated currencies.
The Pakistani Rupee (PKR), introduced in 1948, is the official currency of Pakistan. It is influenced by the national economy, foreign exchange reserves, and international market movements. As volatility continues, the PKR is still the backbone of Pakistan’s economy, sustained by remittances and exports.
Market participants will closely watch the economies of both countries as the KWD-PKR exchange rate stabilizes to predict future directions.
