Kuwaiti Dinar to Pakistani Rupee Rate- October 4, 2025

Kuwait City/Karachi, October 04, 2025:  The Kuwaiti Dinar (KWD) has weakened against the Pakistani Rupee (PKR), reaching 919.70 PKR today in open market trading, as reported at 2:19 PM PST.

KWD to PKR- Daily Updates

This marks a continued decline from 920.75 PKR on September 27, 922.13 PKR on September 20, 921.47 PKR on September 3, and earlier rates of 922.25 PKR on August 29 and a summer peak of 926.79 PKR. The Dinar’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 KWD remains strong, underpinned by Kuwait’s oil-driven economy, while Pakistan’s fiscal challenges continue to shape the Rupee’s performance. This shift impacts trade, remittances, and the Pakistani expatriate community in Kuwait.

Valuation Dynamics: Oil Stability vs. Economic Pressures

The Kuwaiti Dinar’s strength is rooted 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. This peg, supported by foreign exchange reserves estimated at $43 billion in October 2025, ensures low volatility. Global oil prices, averaging $80 per barrel this month due to stable demand and easing geopolitical tensions in the Middle East, continue to bolster the Dinar. The US Dollar’s steady performance, with the Dollar Index at approximately 100.5, reinforces the KWD’s value through its partial linkage. Today’s decline to 919.70 PKR may reflect short-term market adjustments, possibly due to softening oil prices or increased PKR stability from recent reserve inflows.

In contrast, the Pakistani Rupee operates under a managed float, with its value driven by market forces such as foreign exchange supply, inflation, and trade balances. The State Bank of Pakistan intervenes to limit sharp fluctuations, but the PKR remains vulnerable. Inflation, reported at 8.2% in September 2025, shows further moderation but still impacts purchasing power. Foreign reserves, at approximately $15.5 billion, are supported by recent inflows but remain under pressure 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 919.70 PKR today, down from 922.13 PKR on September 20 but up from 901.33 PKR on November 26, 2024, reflects a net appreciation of about 2.04% over the past ten months, highlighting the ongoing economic divergence.

Economic and Social Impacts: Remittances and Trade Implications

The Kuwaiti Dinar/Pakistani Rupee 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. Despite today’s dip, the Dinar’s overall strength enhances the PKR value of these transfers. For example, 1,000 KWD, worth 901,330 PKR on November 26, 2024, now converts to 919,700 PKR, a gain of 18,370 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, even with today’s decline, 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 declines. 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 issues like supply chain inefficiencies and global competition constrain these gains. The Dinar’s strength increases the cost of Kuwaiti imports, potentially widening Pakistan’s trade deficit. Today’s dip to 919.70 PKR offers a slight reprieve for Pakistani importers, but sustained volatility underscores the need for stable exchange rates to ensure predictable trade.

Pakistan Currency Rates Today- Latest Updates

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 decline in the KWD may reflect short-term factors like softened oil prices or improved PKR stability from reserve inflows, possibly tied to multilateral support.

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.