The Kuwaiti Dinar (KWD) has risen against the Pakistani Rupee (PKR), reaching 922.28 PKR today, according to open market sources.
This marks a slight decline from 928.66 PKR on August 11, but remains higher than earlier rates, such as 922.74 PKR on August 19 and 925.45 PKR on June 18. The Dinar’s strength highlights Kuwait’s economic stability, while Pakistan’s ongoing fiscal challenges continue to pressure the Rupee, impacting trade, remittances, and expatriate communities.
Valuation Dynamics
The KWD’s value is driven by Kuwait’s oil-dependent economy and its currency’s loose peg to a basket of international currencies, primarily the US Dollar, managed by the Central Bank of Kuwait. High oil prices and substantial foreign exchange reserves, bolstered by Kuwait’s position as a leading oil exporter, ensure the Dinar’s stability and low volatility. The US Dollar’s global strength further supports the KWD, as its partial tie amplifies its value in international markets.
Conversely, the Pakistani Rupee operates under a managed float, with its value shaped by market forces, including foreign exchange reserves, inflation, and trade balances. The State Bank of Pakistan occasionally intervenes to stabilize the PKR, but persistent high inflation (around 9-11% annually) and a trade deficit, coupled with reliance on energy imports, weaken the currency. Pakistan’s foreign reserves, reported at approximately $14 billion in mid-2025, remain under pressure due to debt repayments, contributing to the PKR’s depreciation. The KWD’s rise to 922.28 PKR today, compared to 901.33 PKR on November 26, 2024, reflects these contrasting economic realities.