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Pakistani Rupee Versus US Dollar – A Historical Review

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 equalBut 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 vs US Dollar

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”.

How much was 1 USD to PKR in 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 USD to PKR in 1947

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.

Nizam UD Deen

Nizam Ud Deen has started his professional carrier in 2014. He is now a CEO and Founder of an IT Firm "ORM Group of Services". He is working as a Digital Marketer in IT Field.

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