The birthday celebrations yesterday were organised by the Cultural Heritage Council at the Peshawar Press Club.
Fans cut a ceremonial cake surrounded by pictures of the "Mughal-e-Azam" star at the event.
Saira Bano, Kumar's wife addressed his fans via telephone. She thanked the people of Peshawar for remembering him and hoped that with their prayers and well wishes, he will soon recuperate and be able to speak to them himself.
Kumar was born in Mohallah Khudadad in Qissa Khwani in 1922 as Yousaf Khan.
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Kumar's house in Peshawar was declared a national heritage but the building has now collapsed and only its faade and main gate remain.
Earlier, the K-P government announced plans to rebuild the house. Government officials believe that the house has immense cultural and historical importance due to its association with the legendary actor and intends to maintain it as his symbol in Peshawar.
During Monday's ceremony, people of the city paid rich tributes to Kumar and remembered him as the "pride of Peshawar".
"We are hopeful that his house will be renovated and will be opened for public," said Shakil Waheedullah, a social activist who organises Kumar's birthday in the city every year.
Waheedullah said the government has already allocated funds for the purpose and will start by renovating those parts of the houses which are still in good condition.
He told the Express Tribune that the purpose of celebrating Kumar's birthday in the city was to bring both the countries closer to each other on the basis of their common cultural and historical links.