Your function will be called because it hides the built-in pwd .
To make a command execute, use command builtin:
command pwd
From the bash manual:
command [-pVv] command [arg ...] Run command with args suppressing the normal shell function lookup. Only builtin commands or commands found in the PATH are executed. If the -p option is given, the search for command is performed using a default value for PATH that is guaranteed to find all of the standard utilities. If either the -V or -v option is supplied, a description of command is printed. The -v option causes a single word indicating the command or file name used to invoke command to be displayed; the -V option produces a more verbose description. If the -V or -v option is supplied, the exit status is 0 if command was found, and 1 if not. If neither option is supplied and an error occurred or command can- not be found, the exit status is 127. Otherwise, the exit sta- tus of the command builtin is the exit status of command.
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