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Pakistani Rupee – Historical Review
In the time when the Pakistani Rupee is facing its lowest exchange rate in contrast to the US dollar, it is of utmost interest to people that what the history of the relationship of PKR and USD is since independence.
What was 1 USD to PKR in 1947 and how this journey evolved?
After the fall of British Raj Britian, India emerged as two independent states; Pakistan as a Muslim majority state and India as a Hindu majority state. Initially, both nations used the pre-existing coins with a stamp Pakistan’s government. Later on, the state bank of Pakistan issued a new banknotes in 1948.
It was assumed that 1 USD to PKR in 1947 was equal. But it is not true. Some economists claim that there is no exact value one can ascertain as at the eve of independence Pakistan has no balance for borrowing outside so PKR was most probably equal to USD.
The other side says that the Pakistani Rupee was never equal to the US Dollars because Pakistan was a British Colony and his direct link was with British Pounds. PKR was pegged to British Pound.
A graphical description of PKR against the US dollar from 1947 to 2021 is figured below:
Pakistani Rupee Versus US Dollar
At that time the exchange rate.
- For 1 rupee was a shilling and six-pence, around 13.33/Pound Sterling.
- For 1 rupee was equal to 1GBP
- 1 GBP was equal to 4.03 US Dollars
So,
- 1 USD was equal to PKR 3.31.
Adaptance of USD as a Foreign Exchange Currency:
In 1947, Pakistani government did not adapt US dollar. In early 1970, USA economy dominated the whole world. So, due to USA economic influence, on 17th September 1971, Pakistani government adapted USD as a foreign Exchange Currency. After that, we saw sometime Pakistani currency strengthening and sometime US Dollar dominating and now on March 7, 2020 we saw one USD was equal to 178.09PKR which is highest till now.
Elevation Periods of USD to PKR:
- First Elevation Period: When President Zia ul Haq shifted the currency to a managed float, the USD against PKR suddenly elevated to peaks. The PKR consequently lost the value by 38.5% and the cost of import suddenly rose. Pakistan’s State Bank stabalized the position and maintained the current account surplus to push up the value of PKR against USD.
- 2nd Elevation Period: Since 1982, the rate of 1 USD to PKR keeps rising compared to 1 USD to PKR in 1947.In 2008 PKR lost 23% of value against USD and fall to almost 79.2 Rs. per USD. The uncertain political conditions and lack of security depleted the foreign investment and foreign exchange reserves fell disastrously.
- 3rd Elevation Current Status: At the time of independence, the Pakistan’s economy was fresh and long lasting than today and the least rate of 1USD to PKR is the evidence of Pakistan’s booming economy at that time. But now, due to overwhelming loans and interests with unstable political conditions, the PKR against USD is now at the lowest in history that is 1 USD equals to 178.15 rupees.
Timeline of PKR
We will tell you the fluctuation of the Dollar rate in Pakistan from 1947 to 2022 which is given as follows:
- In 1947 1 USD was 3.31 PKR
- In 1948 1 USD was 3.31 PKR
- In 1949 1 USD was 3.31 PKR
- In 1950 1 USD was 3.31 PKR
- In 1951 1 USD was 3.31 PKR
- In 1952 1 USD was 3.31 PKR
- In 1953 1 USD was 3.31 PKR
- In 1954 1 USD was 3.31 PKR
- In 1955 1 USD was 3.91 PKR
- In 1956 1 USD was 4.76 PKR
- In 1957 1 USD was 4.76 PKR
- In 1958 1 USD was 4.76 PKR
- In 1959 1 USD was 4.76 PKR
- In 1960 1 USD was 4.76 PKR
- In 1961 1 USD was 4.76 PKR
- In 1962 1 USD was 4.76 PKR
- In 1961 1 USD was 4.76 PKR
- In 1962 1 USD was 4.76 PKR
- In 1963 1 USD was 4.76 PKR
- In 1964 1 USD was 4.76 PKR
- In 1965 1 USD was 4.76 PKR
- In 1966 1 USD was 4.76 PKR
- In 1967 1 USD was 4.76 PKR
- In 1968 1 USD was 4.76 PKR
- In 1969 1 USD was 4.76 PKR
- In 1970 1 USD was 4.76 PKR
- In 1971 1 USD was 4.76 PKR
- In 1972 1USD was 11.01 PKR
- In 1973 1 USD was 9.99 PKR
- In 1974 1 USD was 9.99 PKR
- In 1975 1 USD was 9.99 PKR
- In 1976 1 USD was 9.99 PKR
- In 1977 1 USD was 9.99 PKR
- In 1978 1 USD was 9.99 PKR
- In 1979 1 USD was 9.99 PKR
- In 1980 1 USD was 9.99 PKR
- In 1981 1 USD was 9.99 PKR
- In 1982 1 USD was 11.85 PKR
- In 1983 1 USD was 13.12 PKR
- In 1984 1 USD was 14.05 PKR
- In 1985 1 USD was 15.93 PKR
- In 1986 1 USD was 16.65 PKR
- In 1987 1 USD was 17.4 PKR
- In 1988 1 USD was 18 PKR
- In 1989 1 USD was 20.54PKR
- In 1990 1 USD was 21.71 PKR
- In 1991 1 USD was 23.8 PKR
- In 1992 1 USD was 25.08 PKR
- In 1993 1 USD was 28.11 PKR
- In 1994 1 USD was 30.57 PKR
- In 1995 1 USD was 31.64 PKR
- In 1996 1 USD was 36.08 PKR
- In 1997 1 USD was 41.11PKR
- In 1998 1 USD was 45.05 PKR
- In 1999 1 USD was 51.90 PKR
- In 2000 1 USD was 51.90 PKR
- In 2001 1 USD was 63.5 PKR
- In 2002 1 USD was 60.5PKR
- In 2003 1 USD was 57.75 PKR
- In 2004 1 USD was 57.8 PKR
- In 2005 1 USD was 59.7 PKR
- In 2006 1 USD was 60.4 PKR
- In 2007 1 USD was 60.83 PKR
- In 2008 1 USD was 81.1 PKR
- In 2009 1 USD was 84.1 PKR
- In 2010 1USD was 85.75 PKR
- In 2011 1 USD was 88.6 PKR
- In 2012 1 USD was 96.5 PKR
- In 2013 1 USD was 107.2PKR
- In 2014 1 USD was 103 PKR
- In 2015 1 USD was 105.20 PKR
- In 2016 1 USD was 104.6 PKR
- In 2017 1 USD was 110.01 PKR
- In 2018 1 USD was 139 PKR
- In 2019 1 USD was 163.75 PKR
- In 2020 1 USD was 168.88PKR
- In 2021 1 USD was 179.16PKR
- In 2022 1 USD was 176.4PKR
The Highest Rate recorded is during PPP and PMLN era. Now it is also mounting in the Tahreek e Insaf government.
Brief History of Pakistani Rupee
On Formation, this nation does not have its own currency. There was no central bank in Pakistan neither was any mint nor Texel. “For coping with this issue the Governor-General of United India passed a Pakistani Currency and Reserve Bank Order 1947 one day before partition on 13 August 1947”.
This Order made the Reserve Bank of India the common currency authority for India and Pakistan till the date of 30 September 1948.
It was to allow an estimated cushion period of 1 year for a newborn States to start its own currency.
Till that time the Reserve Bank was legal tender. On 1st April Pakistan inaugurated its Currency Notes with the inscription of “Government of Pakistan” both in Urdu and English.
For seven-month period notes of the Reserve Bank of India and the Government of India continued to circulate in Pakistan, at the top of the white area of those Notes was reserved for the watermark of the words “GOVERNMENT OF PAKISTAN”, inscribed in English, meanwhile, at the bottom of the white area the Urdu rendition of the same phrase appears, i.e.“Hakoomat-e-Pakistan”.
For inscriptions, purpose printing plates were modified for avoiding forgery instead of overprinting.
Despite all difficulties of no resources and brains, the Minister of Finance made it Possible to set Up the State Bank of Pakistan on 12 May of 1948.
The government issued the “State Bank of Pakistan Order, 1948” on 12 May 1948 under the authority vested in the provisions of Section 9 of the Indian Independence Act,1947 by the Governor-General of Pakistan.
After that efforts for making their own currency notes were intensified. Our initial notes of Rs 5, 10, and 100 were designed by Thomas De La Rue & Company of Great Britain. The 5-rupee note’s colour was deep blue, the 10-rupee’s colour was red, and the 100-rupee note was in rich green colour. Rs.1 and Rs. 2 Currency Notes were produced by Bradbury Wilkinson and Company of Great Britain.
The foundation stone for the new Security Printing Press under the Pakistan Security Printing Corporation was laid in Karachi by Muhammad Ali Jinnah, the Governor-General of Pakistan, on 11 March 1949.
1 Pakistani rupee had 16 ana and each ana having 4 paise, i.e. one rupee having 64 paisas and 1 anna was the basic unit in the form of the coin until 1960. After that Pakistan adopted The Metric System.
After that one Pakistani rupee contains 100 paise. Coins of the value of one, two, five, 10, 25, 50 paise also came in the market. Current currency notes in circulation are of Rs.5, 10, 20, 50,100, 500, 1000 and 5000 denominations.
Future Predictions of Pakistan’s Economy
Economists predicted a promising future of Pakistan’s Economy and considered Pakistan as an emerging marketplace. They termed it as a take-off stage, and it will turn ow income countries into middle income countries in the next five years. Indeed the USD to PKR is also a streamline and hopefully revive the same rate of 1USD to PKR in 1947. With the increasing trade system with Supere Powers and stable economic environment preserves the exchange rate and maintains the stability.
