Kuwait City/Karachi – June 5, 2025 – According to open market data, the exchange rate of the Kuwaiti Dinar (KWD) against the Pakistani Rupee (PKR) has remained stable at 913.99 PKR.
This slight shift in the exchange rate has led analysts and traders to comment on the potential factors affecting its value and the consequences for trade and remittances between the two countries.
One Kuwaiti Dinar is equivalent to 913.99 Pakistani Rupees.
Understanding the KWD-PKR Exchange Rate
The exchange rate of the KWD in relation to the PKR is affected by various economic and market factors. The Kuwaiti Dinar, known as one of the strongest currencies globally, is linked to a currency basket and does not freely fluctuate. This pegged situation contributes to its stability. The Central Bank of Kuwait maintains this peg to ensure a consistent currency value relative to major international currencies.
On the other hand, the Pakistani Rupee is subject to a floating system, with its value determined by supply and demand in the foreign exchange market, although the State Bank of Pakistan intervenes from time to time to maintain stability. Factors such as foreign currency reserves, trade balances, inflation rates, and the differences in interest rates between Kuwait and Pakistan greatly influence the KWD-PKR exchange rate.
The recent decrease of the Kuwaiti Dinar from 916 to 913.99 PKR is interpreted as a result of minor changes in market sentiment due to shifts in Pakistan’s foreign reserves or changes in demand for the dinar from Pakistan. Traders pointed out that such small variations are expected and will likely be resolved quickly due to Kuwait’s strong economic fundamentals.
Consequences for Trade and Remittances
The minor decline in the KWD against the PKR has implications for economic relations between Kuwait and Pakistan. Remittances play a crucial role in Pakistan’s economy, with many Pakistani expatriates residing in Kuwait. A weaker KWD indicates that Pakistani workers in Kuwait might see a reduction in the value of their remittances when converted to PKR. For instance, a monthly remittance that previously equated to 91,600 PKR is now worth 91,399 PKR—a slight adjustment that could have important long-term consequences for those dependent on these remittances.
In terms of bilateral trade, the impact is expected to be minimal due to the negligible nature of the decline. Kuwait exports oil products to Pakistan while importing textiles, agricultural goods, and labor services from Pakistan. A stable exchange rate helps ensure consistent trading costs, and experts believe that the current rate of 913.99 PKR will not significantly alter trade relations.
Overview of KWD and PKR
The Kuwaiti Dinar (KWD) is the official currency of Kuwait, which was established in 1961 to replace the Gulf Rupee. Its high value is supported by Kuwait’s vast oil reserves and stable economic policies, ranking it among the most valuable currencies worldwide.
Launched in 1948, the Pakistani Rupee (PKR) serves as the official currency of Pakistan. Its value is shaped by the national economy, foreign exchange reserves, and changes in the international market. Despite persistent volatility, the PKR remains a cornerstone of Pakistan’s economy, strengthened by remittances and exports.
Market participants will monitor the economic situations in both nations closely as the KWD-PKR exchange rate stabilizes to anticipate future developments.
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