Kuwait City/Karachi, October 18, 2025: The Kuwaiti Dinar (KWD) has edged higher against the Pakistani Rupee (PKR), reaching 919.53 PKR at the end of the week in open market trading, as reported at 3:29 PM PST.
KWD to PKR- Latest Updates
This marks a slight recovery from 917.13 PKR on October 11, following a decline from 919.70 PKR on October 4, 920.75 PKR on September 27, 922.13 PKR on September 20, and a summer peak of 926.79 PKR. The rate also reflects a broader trend, climbing from 919.67 PKR on June 10, 922.06 PKR on June 13, and 925.45 PKR on June 18. The KWD’s resilience underscores Kuwait’s oil-driven economic stability, while Pakistan’s ongoing fiscal challenges shape the Rupee’s performance, with significant implications for trade, remittances, and the Pakistani expatriate community in Kuwait.
The Kuwaiti Dinar’s strength is anchored in Kuwait’s robust economic framework. As the world’s highest-valued currency, the KWD is loosely pegged to a basket of currencies, primarily the US Dollar, under the Central Bank of Kuwait’s management. Supported by foreign exchange reserves estimated at $43 billion in October 2025, the KWD maintains low volatility.
Global oil prices, averaging $80 per barrel this month amid stable demand and balanced OPEC+ production, bolster the Dinar’s value. The US Dollar’s steady performance, with the Dollar Index at approximately 100.6, further reinforces the KWD through its partial linkage. Today’s uptick to 919.53 PKR may reflect minor recoveries in oil prices or market adjustments following recent PKR gains.
The Pakistani Rupee, operating under a managed float, is shaped by market forces including foreign exchange reserves, inflation, and trade balances. The State Bank of Pakistan intervenes to curb sharp fluctuations, but the PKR remains sensitive to domestic pressures. Inflation, reported at 8.4% in October 2025, has moderated slightly but continues to erode purchasing power. Foreign reserves, at approximately $15.6 billion, are bolstered by recent IMF inflows but face strain from external debt repayments and a trade deficit projected at $26.8 billion for fiscal year 2024-25. Pakistan’s reliance on energy imports and limited export diversification contribute to the Rupee’s relative weakness. The KWD’s position at 919.53 PKR today, up from 917.13 PKR on October 11 and 901.33 PKR on November 26, 2024, reflects a net appreciation of about 2.02% over eleven months, highlighting the economic divergence between Kuwait and Pakistan.
The KWD to PKR exchange rate profoundly impacts the 220,000-250,000 Pakistani expatriates in Kuwait, whose remittances, estimated at $1.9 billion annually, are a cornerstone of Pakistan’s economy. The slight strengthening of the Dinar enhances the PKR value of these transfers. For example, 1,000 KWD, worth 901,330 PKR on November 26, 2024, now converts to 919,530 PKR, a gain of 18,200 PKR. This uplift supports Pakistani households, particularly in regions like Punjab and Sindh, by boosting purchasing power for essentials like education, healthcare, and housing.
However, the Dinar’s strength increases costs for Pakistani businesses importing Kuwaiti goods, notably petroleum products, a key component of bilateral trade. Higher import costs could elevate domestic fuel prices in Pakistan, adding to inflationary pressures despite recent moderation. For expatriates, the stronger Dinar means their earnings convert to more PKR, but it raises the cost of PKR-priced goods or services during visits or for investments like real estate. Pakistan’s inflation may erode the real value of remittances over time, limiting their long-term impact.
In trade, a weaker PKR could enhance the competitiveness of Pakistani exports, such as textiles and agricultural products, in Kuwaiti markets. However, structural constraints like supply chain inefficiencies and global competition limit these gains. The Dinar’s strength increases the cost of Kuwaiti imports, potentially widening Pakistan’s trade deficit. Today’s uptick to 919.53 PKR slightly increases pressure on importers, though the rate remains below summer highs, offering some stability for trade planning.
Kuwait’s economy, with a GDP of approximately $150 billion in 2025, thrives on oil exports and maintains a fiscal surplus, with public debt below 10% of GDP. This stability reinforces the Dinar’s strength. In contrast, Pakistan’s $360 billion economy faces energy shortages, political uncertainty, and reliance on external financing. The International Monetary Fund’s $7 billion Extended Fund Facility, ongoing in 2025, supports reforms like fiscal consolidation, but measures such as subsidy cuts may pressure domestic consumption, indirectly affecting the PKR.
Regional stability in the Middle East sustains oil prices, benefiting the KWD. Pakistan’s economic ties to the Gulf, through remittances and investments, make it sensitive to currency fluctuations. Global factors, including US monetary policy and commodity price trends, also influence the KWD/PKR pair. Today’s rise in the KWD may reflect stabilizing oil markets or reduced PKR momentum following recent reserve gains.
Currency Profiles
The Kuwaiti Dinar (KWD), introduced in 1961, is Kuwait’s official currency, symbolized as KD or د.ك and subdivided into 1,000 fils. Managed by the Central Bank of Kuwait, it is the world’s highest-valued currency, backed by oil revenues, substantial reserves, and a peg to a currency basket, ensuring stability and global confidence.
The Pakistani Rupee (PKR), established in 1947, is Pakistan’s currency, symbolized as ₨ and divided into 100 paisa. Regulated by the State Bank of Pakistan under a managed float, its value reflects domestic challenges like inflation, trade imbalances, and limited reserves, contrasting with the KWD’s stability.