Kuwait City/Karachi, 20th September, 2025: The Kuwaiti Dinar (KWD) has risen slightly higher compared to the Pakistani Rupee (PKR) today, trading at 922.13 PKR in open market dealings, according to a report at 3:46 PM PST.
KWD to PKR- Daily Updates
This is after a slight decline to 921.47 PKR on September 3 and recent fluctuations, with rates standing at 922.25 PKR on August 29, 921.68 PKR on August 23, and a peak of 926.79 PKR in the early summer. The path of the Dinar also indicates a consistent upward movement from 919.67 PKR on June 10, 922.06 PKR on June 13, and 925.45 PKR on June 18.
The steadfastness of the KWD is testament to Kuwait’s oil-rich economic stability, as Pakistan’s own economic issues continue to stress the Rupee, affecting trade, remittances, and the Pakistani expat community in Kuwait.
Valuation Dynamics: Oil Wealth vs. Economic Pressures
The strength of the Kuwaiti Dinar is a function of Kuwait’s sound economic fundamentals. Being the world’s most valuable currency, the KWD is floated loosely against a basket of currencies, dominated by the US Dollar, under the care of the Central Bank of Kuwait.
This float, underpinned by foreign exchange reserves valued at $43 billion in September 2025, maintains the low volatility. International oil prices, averaging $82 per barrel in September with consistent demand and political stability in the Middle East, underpin the Dinar. The consistent performance of the US Dollar, with the Dollar Index sitting around 101.2, further supports the value of the KWD through its partial pegging.
Kuwaiti Dinar to Pakistani Rupee Rate- 20 September 2025
The Pakistani Rupee, on the other hand, is managed floated, and its value is influenced by market forces like foreign exchange supply, inflation, and trade balance. The State Bank of Pakistan intervenes to dampen extreme fluctuations, but the PKR is still at risk. September 2025 inflation stood at 8.7%, further eating away at purchasing power, while foreign reserves of approximately $15.2 billion are under pressure from external debt servicing and a $26.5 billion trade deficit forecast for fiscal year 2024-25.
The weakening of the Rupee is compounded by Pakistan’s high dependence on imported energy and lack of export diversification. The KWD appreciation from 901.33 PKR as of November 26, 2024, to 922.13 PKR today is a 2.3% appreciation, demonstrating the divergent economic paths of Kuwait and Pakistan.
Economic and Social Impacts: Remittances, Trade, and Challenges
The appreciating KWD/PKR exchange rate impacts the 220,000-250,000 Pakistani expatriates in Kuwait whose estimated $1.9 billion annual remittances are the bedrock of the Pakistani economy. The appreciating Dinar boosts the PKR value of these remittances. For instance, 1,000 KWD, equivalent to 901,330 PKR on November 26, 2024, now translates into 922,130 PKR, or an appreciation of 20,800 PKR. This appreciation benefits Pakistani families in covering basic needs such as education, healthcare, and shelter, especially in remittance-prone areas of Punjab and Sindh.
Kuwaiti Dinar to Pakistani Rupee Rate- 20 September 2025
The appreciating Dinar boosts the PKR value of these remittances. For instance, 1,000 KWD, equivalent to 901,330 PKR on November 26, 2024, now translates into 922,130 PKR, or an appreciation of 20,800 PKR. This appreciation benefits Pakistani families in covering basic needs such as education, healthcare, and shelter, especially in remittance-prone areas of Punjab and Sindh.
The appreciating Dinar, though, raises costs for Pakistani companies that import Kuwaiti products, specifically petroleum products, a major driver of bilateral trade. Increased import prices may further increase domestic fuel prices in Pakistan, contributing to inflationary pressures even after recent moderation.
For expats, the stronger exchange rate translates to Dinars going further when exchanged for PKR, but increases the price of PKR-valued goods or services while visiting or for investments such as property. Pakistan’s chronic inflation could also reduce the real value of remittances with the passage of time.
In trade, a devalued PKR would make Pakistani exports like textiles and agricultural products more competitive in Kuwaiti markets. Structural restraints, such as supply chain inefficiencies and international competition, curb these advantages. The hardier Dinar makes Kuwaiti imports more expensive and could expand Pakistan’s trade deficit. Stable exchange rates are essential for consistent trade, but current fluctuations are uncertainty for Pakistani importers.
Wider Context: Global and Regional Drivers
Kuwait’s economy with a GDP of about $150 billion in 2025 is supported by strong oil prices and a budget surplus, while public debt remains less than 10% of GDP. This stability supports the Dinar’s strength. Pakistan’s $360 billion economy, on the other hand, is supported by energy shortages, political instability, and dependence on external funding.
The International Monetary Fund $7 billion Extended Fund Facility, which continues in 2025, underpins reforms such as fiscal consolidation, but reforms like subsidy reductions may put pressure on domestic spending, impacting the PKR indirectly.
Kuwaiti Dinar to Pakistani Rupee Rate- 20 September 2025
Regional geopolitics, with relative stability in the Middle East, underpin oil prices, to the advantage of the KWD. The economic links between Pakistan and the Gulf, in terms of remittances and investments, expose it to currency fluctuation. International influences, such as US monetary policy and trends in commodity prices, also affect the KWD/PKR pair.
Currency Profiles
The Kuwaiti Dinar (KWD), launched in 1961, is Kuwait’s currency, abbreviated as KD or د.ك and divided into 1,000 fils. The Central Bank of Kuwait manages it. It is the highest-valued currency in the world, supported by oil receipts, huge reserves, and a currency basket peg, which provides stability and international confidence.
The Pakistani Rupee (PKR), which was formed in 1947, is the currency of Pakistan, denoted by ₨ and segmented into 100 paisa. Managed by the State Bank of Pakistan under a managed float, its exchange rate tracks domestic issues such as inflation, trade deficits, and scarce reserves, as opposed to the stability of the KWD.
The appreciation of the Kuwaiti Dinar to 922.13 PKR on September 20, 2025, serves to underscore the economic contrast between Kuwait’s petroleum-driven stability and the structural issues facing Pakistan. Whereas the stronger Dinar appreciates remittance worth for Pakistani families, it burdens importers and highlights the necessity of economic reforms in Pakistan.
As oil prices, monetary policies, and regional developments change, the KWD/PKR exchange rate will continue to be a pivotal indicator of bilateral economic relations, with far-reaching implications for trade, remittances, and millions of livelihoods.
