Kuwaiti Dinar to Pakistani Rupee Rate Today- August 23, 2025

Kuwait City/Karachi, August 23, 2025 – The Kuwaiti Dinar (KWD) has recorded a slight uptick against the Pakistani Rupee (PKR), reaching 921.68 PKR today in open market trading, as reported at 5:14 PM PST.

KWD to PKR- Latest Updates

This follows a recent high of 926.79 PKR earlier this week and a steady climb from 919.67 PKR on June 10, 922.06 PKR on June 13, and 925.45 PKR on June 18. The Dinar’s persistent strength underscores Kuwait’s economic resilience, driven by its oil wealth, while Pakistan’s ongoing fiscal pressures continue to weigh on the Rupee. This exchange rate movement carries significant implications for trade, remittances, and the livelihoods of millions, particularly the large Pakistani expatriate community in Kuwait.

Valuation Dynamics: A Tale of Stability vs. Volatility

The Kuwaiti Dinar’s strength is rooted in Kuwait’s robust economic fundamentals. As one of the world’s highest-valued currencies, the KWD is loosely pegged to a basket of currencies, primarily the US Dollar, under the stewardship of the Central Bank of Kuwait. This peg, combined with Kuwait’s substantial foreign exchange reserves—estimated at over $40 billion in 2025—and its position as a leading oil exporter, ensures minimal volatility. Global oil prices, which have remained elevated due to steady demand and geopolitical tensions in the Middle East, further bolster the Dinar. The US Dollar’s strength in international markets, with the Dollar Index hovering around 102 in August 2025, also supports the KWD’s value, given its partial alignment with the USD.

In contrast, the Pakistani Rupee operates under a managed float regime, with its value determined by market forces such as foreign exchange supply and demand, domestic inflation, and trade balances. The State Bank of Pakistan intervenes periodically to stabilize the PKR, but the currency remains vulnerable to structural challenges. Pakistan’s inflation rate, reported at 9.6% in July 2025, continues to erode purchasing power, while its foreign exchange reserves, approximately $14.5 billion as of August, are strained by external debt repayments and a persistent trade deficit. Pakistan’s reliance on imported energy, coupled with limited export growth, exacerbates the Rupee’s depreciation. The KWD’s rise from 901.33 PKR on November 26, 2024, to 921.68 PKR today reflects these divergent economic trajectories, with the Dinar gaining roughly 2.26% against the Rupee over the past nine months.

Economic and Social Impacts: Winners and Challenges

The rising KWD exchange rate against Pakistani Rupee has profound implications for economic and social ties between Kuwait and Pakistan, particularly for the estimated 200,000-250,000 Pakistani expatriates in Kuwait. These workers, primarily employed in construction, healthcare, and domestic services, send home approximately $1.8 billion annually, making Kuwait one of Pakistan’s top remittance sources. The stronger Dinar amplifies the value of these remittances in PKR terms. For example, 1,000 KWD, worth 901,330 PKR on November 26, 2024, now converts to 921,680 PKR, a gain of 20,350 PKR. This increase enhances the purchasing power of families in Pakistan, supporting critical expenses such as education, healthcare, and housing, and contributing to local economies, particularly in regions like Punjab and Khyber Pakhtunkhwa.

However, the stronger Dinar poses challenges for Pakistani businesses importing goods from Kuwait, notably petroleum products, which account for a significant portion of bilateral trade. The higher exchange rate increases import costs, potentially driving up domestic prices for fuel and related goods in Pakistan, where inflation is already a concern. For Pakistani expatriates in Kuwait, the stronger Dinar means their earnings stretch further when converted to PKR, but it also raises the cost of goods and services priced in PKR during visits to Pakistan or for financial obligations like property investments. Additionally, Pakistan’s high inflation may erode the real value of remittances, limiting their long-term economic impact.

From a trade perspective, the exchange rate affects the competitiveness of Pakistani exports to Kuwait, such as textiles and agricultural products. A weaker PKR could make these goods more attractive in Kuwaiti markets, but Pakistan’s export capacity remains constrained by supply chain inefficiencies and global competition. Conversely, the higher cost of Kuwaiti imports could strain Pakistan’s trade balance, which reported a deficit of $24 billion in the fiscal year 2024-25. Stable exchange rates are crucial for predictable trade planning, but the KWD’s upward trend introduces uncertainty for Pakistani importers.

Broader Context: Global and Regional Factors

The KWD/PKR exchange rate is also influenced by global and regional economic trends. Kuwait’s economy, with a GDP of approximately $140 billion in 2025, benefits from high oil prices, projected to average $85 per barrel this year. The country’s fiscal surplus and low public debt (around 11% of GDP) provide a buffer against global economic shocks, reinforcing the Dinar’s strength. Meanwhile, Pakistan’s GDP, estimated at $340 billion, is hampered by structural issues, including energy shortages and political instability, which weaken investor confidence and pressure the Rupee.

Geopolitical factors, such as tensions in the Middle East, indirectly support the KWD by sustaining oil prices, while Pakistan’s reliance on Gulf remittances makes its economy sensitive to currency fluctuations in the region. The International Monetary Fund’s ongoing $7 billion Extended Fund Facility for Pakistan, approved in 2024, aims to stabilize its economy, but reforms such as subsidy cuts and tax increases could further strain domestic consumption, indirectly affecting the PKR’s value.

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, underpinned by Kuwait’s oil-driven economy, substantial foreign reserves, and a currency peg to a basket of international currencies. This structure ensures stability, making the KWD a reliable store of value in global markets.

The Pakistani Rupee (PKR), established in 1947, is Pakistan’s official currency, symbolized as ₨ and divided into 100 paisa. Regulated by the State Bank of Pakistan under a managed float system, the PKR’s value is influenced by domestic economic indicators, including inflation, trade balances, and foreign reserves, as well as global market conditions. Its volatility reflects Pakistan’s economic challenges, contrasting sharply with the KWD’s stability.