Kuwaiti Dinar to Pakistani Rupee Rate- October 25, 2025

Kuwait City/Karachi, October 25, 2025: The Kuwaiti Dinar (KWD) has weakened further against the Pakistani Rupee (PKR), reaching 916.35 PKR at the end of this week in open market trading.

This marks a continued decline from 919.53 PKR on October 18, 917.13 PKR on October 11, 919.70 PKR on October 4, and earlier rates of 920.75 PKR on September 27, 922.13 PKR on September 20, and a summer peak of 926.79 PKR. The KWD’s trajectory also includes a climb from 919.67 PKR on June 10, 922.06 PKR on June 13, and 925.45 PKR on June 18. Despite today’s dip, the Dinar remains robust, underpinned by Kuwait’s oil-driven economy, while Pakistan’s fiscal reforms and reserve gains bolster the Rupee. This shift impacts trade, remittances, and the Pakistani expatriate community in Kuwait.

Valuation Dynamics: Oil Markets vs. PKR Stabilization

The Kuwaiti Dinar’s strength stems from Kuwait’s economic fundamentals. 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 $79 per barrel this month due to balanced OPEC+ production and easing geopolitical tensions, continue to support the Dinar. However, a slight softening in oil prices, with Brent crude at $78.50 per barrel on October 24, may contribute to today’s decline. The US Dollar’s steady performance, with the Dollar Index at approximately 100.4, provides partial support for the KWD through its linkage.

In contrast, the Pakistani Rupee operates under a managed float, shaped by market forces such as foreign exchange reserves, inflation, and trade balances. The State Bank of Pakistan intervenes to limit sharp fluctuations, and recent efforts have strengthened the PKR. Inflation, reported at 8.1% in October 2025, continues to moderate, while foreign reserves, at approximately $15.8 billion, benefit from IMF inflows and remittance surges. Pakistan’s trade deficit, projected at $26.7 billion for fiscal year 2024-25, and reliance on energy imports remain challenges, but improved reserves and fiscal reforms have bolstered the PKR. The KWD’s position at 916.35 PKR today, down from 919.53 PKR on October 18 and significantly below the summer high of 926.79 PKR, reflects a 1.95% appreciation against the PKR since November 26, 2024 (901.33 PKR), driven by Pakistan’s stabilizing measures.

Economic and Social Impacts: Remittances, Trade, and Opportunities

The KWD/PKR exchange rate significantly affects the 220,000-250,000 Pakistani expatriates in Kuwait, whose remittances, estimated at $1.9 billion annually, are a vital economic pillar for Pakistan. Today’s weaker Dinar slightly reduces the PKR value of these transfers. For example, 1,000 KWD, worth 919,530 PKR on October 18, now converts to 916,350 PKR, a loss of 3,180 PKR. Despite this, the Dinar’s overall strength compared to last year (901,330 PKR for 1,000 KWD on November 26, 2024) still provides a net gain of 15,020 PKR, supporting households in regions like Punjab and Sindh for essentials like education, healthcare, and housing.

The weaker Dinar offers relief for Pakistani businesses importing Kuwaiti goods, particularly petroleum products, a key component of bilateral trade. Lower import costs could ease domestic fuel prices in Pakistan, mitigating inflationary pressures. For expatriates, the dip means slightly less PKR for their earnings, but it reduces the cost of PKR-priced goods or services during visits or for investments like real estate. However, Pakistan’s inflation may still erode the real value of remittances over time.

In trade, a stronger PKR could reduce the competitiveness of Pakistani exports, such as textiles and agricultural products, in Kuwaiti markets. However, the lower KWD rate eases import costs, potentially narrowing Pakistan’s trade deficit. Structural constraints like supply chain inefficiencies and global competition continue to limit export gains. Today’s rate of 916.35 PKR provides a window of stability for importers, though ongoing volatility underscores the need for predictable trade conditions.

Broader Context: Global and Regional Influences

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, though softening oil prices introduce mild pressure. 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, boosting reserves but pressuring domestic consumption through measures like subsidy cuts.

Regional stability in the Middle East sustains oil prices, benefiting the KWD, while 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, influence the KWD/PKR pair. Today’s decline in the KWD may reflect softened oil prices or Pakistan’s improved reserve position, possibly tied to multilateral support or remittance inflows.

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, though recent reforms have strengthened its position against the KWD.

The Kuwaiti Dinar’s decline to 916.35 Pakistani Rupee on October 25, 2025, reflects evolving market dynamics, with Kuwait’s oil-driven stability tempered by softening crude prices and Pakistan’s PKR bolstered by reserve gains and fiscal reforms. While the weaker Dinar slightly reduces remittance values, it offers relief for importers and highlights Pakistan’s stabilization efforts. As oil prices, monetary policies, and regional dynamics evolve, the KWD/PKR exchange rate will remain a critical indicator of bilateral economic ties, with significant implications for trade, remittances, and millions of livelihoods.