As of January 31, 2026, the Bahraini Dinar (BHD) has shown a strong rally against the Pakistani Rupee (PKR), with the interbank exchange rate reaching 745.50. After remaining around 741.32 earlier in the week, the Dinar’s 0.56% rise over a few days highlights the Pakistani Rupee’s ongoing sensitivity to month-end economic pressures. On a monthly basis, the Rupee has declined approximately 0.44%, moving from 742.26 on January 1 to today’s rate.
The Bahraini Dinar is one of the world’s strongest currencies and maintains a fixed peg to the US Dollar (1 BHD = 2.659 USD), offering stability and predictability for expats. In contrast, the Pakistani Rupee is a floating currency influenced by Pakistan’s current account, foreign investment inflows, and foreign exchange reserves, which contributes to its volatility.
For the nearly 120,000 Pakistanis living and working in Bahrain, the current exchange rate provides an advantageous opportunity for remittances. A transfer of BHD 200 now converts to roughly 149,100 PKR, nearly 700 PKR more than the same transfer five days ago. This increase comes as welcome relief for families in Pakistan facing rising living costs and seasonal expenses.
While the interbank rate stands at 745.50, open-market rates may range between 748 and 752 PKR depending on the exchange house and local demand. For those investing in Pakistani savings certificates, real estate, or other assets, these end-of-month peaks offer favorable conversion rates. However, the weaker Rupee can also drive higher import costs, meaning goods in cities like Karachi and Lahore may become more expensive even as remittances stretch further.
