Bahraini Dinar to Pakistani Rupee Rate Today- May 12, 2025
- By Web Desk -
- May 12, 2025
Manama/Karachi- May 12, 2025: The Bahraini Dinar (BHD) continues to maintain a strong position against the Pakistani Rupee (PKR), with the current exchange rate noted at 1 BHD= 745.91 PKR.
This situation persists despite the changing landscape of global currencies, highlighting Bahrain’s robust economy contrasted with Pakistan’s cautious outward economic sector. Furthermore, Bahrain benefits from a fixed exchange rate of its Dinar (1 BHD=2.65 USD) to the US dollar, which acts as an anchor during periods of uncertainty.
1 Bahraini Dinar is equivalent to 745.91 Pakistani Rupees.
Factors Contributing to Exchange Rate Stability
Several critical factors contribute to the current stability between the Dinar and the Rupee. Bahrain’s solid economic fundamentals and prudent fiscal management are central to the Dinar’s stability. In contrast, the exchange rate of the Pakistani Rupee is influenced by various elements including remittance inflows, trade balances, and interventions by the State Bank of Pakistan (SBP). Measures implemented by the SBP to stabilize the currency, such as tightening regulations on foreign exchange transactions and efforts to bolster reserves, have effectively curtailed severe depreciation. Additionally, the continuous influx of remittances from Pakistani expatriates in Bahrain and other Gulf nations provides a consistent source of foreign currency, further bolstering the PKR.
Effects on Pakistani Expatriates in Bahrain
For the large population of Pakistani expatriates in Bahrain, the consistent exchange rate offers significant reassurance. A stable Bahraini Dinar-PKR exchange rate ensures that the remittances they send home retain their value, enabling their families to manage household expenses in Pakistan’s inflationary climate. Expatriate families primarily rely on such remittances for essential needs like education, healthcare, and daily living costs. Fluctuations in the exchange rate could disrupt their budgeting. Hence, this stability holds considerable value. Moreover, a fixed exchange rate lessens the uncertainties generally linked with foreign currency transactions, thereby encouraging more expatriates to utilize official channels for remittance.
Impact on Bilateral Trade Between Bahrain and Pakistan
The steadiness of the BHD-PKR exchange rate also positively affects trade between Pakistan and Bahrain. Bahrain imports a variety of goods from Pakistan, including textiles, agricultural products, and meat, while Pakistan supplies petroleum products, aluminum, and machinery to Bahrain. A stable exchange rate mitigates currency risks for businesses engaged in cross-border trading, making contract negotiations and long-term agreements simpler. Both trader groups gain from this certainty, as unexpected currency fluctuations can erode profit margins and disrupt supply chains. Over time, this consistency may foster greater economic interdependence and lead to increased trade volumes between the two countries.
A Brief Overview of the Bahraini Dinar and Pakistani Rupee
The Bahraini Dinar, which was established in 1965, is recognized as one of the strongest currencies globally, underpinned by the country’s strong finance sector and oil-based economy. On the other hand, the Pakistani Rupee is issued by the State Bank of Pakistan, which operates on a managed float regime with its value set by market forces along with regulatory actions. While the PKR has faced pressure of depreciation in recent years due to economic reversals, it remains one of the leading currencies in South Asia, supported by remittances and export earnings.