Pakistani rupee

The Pakistani rupee (Urdu: روپیہ‎ / ALA-LC: Rūpiyah; sign: ; code: abbreviated as PKR) has been the official currency of Pakistan since 1948. The coins and notes are issued and controlled by the central bank, namely State Bank of Pakistan.

Pakistani rupee
Pakistani Rupee.jpg
₨.20/-, ₨.100/-, ₨.500/- and ₨.1,000/- banknotes
ISO 4217
CodePKR
Number586
Exponent2
Denominations
Subunit
1100Paisa
(defunct); Paisa denominated coins ceased to be legal tender in 2013[1]
Symbol₨. /-
Banknotes
 Freq. used₨.10/-, ₨.20/-, ₨.50/-, ₨.100/-, ₨.500/-, ₨.1,000/-
 Rarely used₨.5,000/-
Coins
 Freq. used₨.1/-, ₨.2/-, ₨.5/-, Rs.10/-
 Rarely used₨.20/-, ₨.50/-, Rs.70/-, Rs.550/-
Demographics
Official user(s) Pakistan
Unofficial user(s) Afghanistan[2][3]
Issuance
Central bankState Bank of Pakistan
 Websitewww.sbp.org.pk
PrinterPakistan Security Printing Corporation
MintPakistan Mint
Valuation
Inflation8.4% (July 2021)

Since the United States dollar suspension in 1971 of convertibility of paper currency into any precious metal, Pakistani rupee is, de facto, fiat money. Before the collapse of Bretton Woods system, currency was pegged at fixed exchange rate to the United States dollar for international trade and was backed by the US gold. The currency was convertible to gold on demand.

In Pakistani English, large values of rupees are counted in thousands; lakh (100,000); crore (ten-millions); arab (billions); kharab (hundred-billions).

HistoryEdit

 
Rupee coin, made of silver, used in the state of Bahawalpur before 1947.
 
Rupee coin, made of gold, used in the state of Bahawalpur before 1947.
 
British Indian rupees were stamped with Government of Pakistan to be used as legal tender in the new state of Pakistan in 1947.

The word rūpiya is derived from the Sanskrit word rūpya, which means "wrought silver, a coin of silver",[4] in origin an adjective meaning "shapely", with a more specific meaning of "stamped, impressed", whence "coin". It is` derived from the noun rūpa "shape, likeness, image". Rūpaya was used to denote the coin introduced by Sher Shah Suri during his reign from 1540 to 1545 CE.

The Pakistani rupee was put into circulation in Pakistan after the dissolution of the British Raj in 1947. Initially, Pakistan used British Indian coins and notes simply over-stamped with "Pakistan". New coins and banknotes were issued in 1948. Like the Indian rupee, it was originally divided into 16 annas, each of 4 pice or 12 pie. The currency was decimalised on 1 January 1961, with the rupee subdivided into 100 pice, renamed (in English) paise (singular paisa) later the same year. However, coins denominated in paise have not been issued since 1994.

CoinsEdit

First Pakistani rupee coin, made of nickel, 1948.
 
Five paisa coin first used in 1965
 
1 paisa coin first used in 1972
 
5 paisa coin used in 1972
 
1 paisa coin used in 1974
 
2 paisa coin used in 1976
 
5 paisa coin issued until 1994, one of the last octagonal coins of Pakistan.
 
1 rupee coin (reverse) made of aluminium used in 1986
 
Commemorative 20 rupees coin on the 150th year of Lawrence College Ghora Gali in 2011.

In 1948, coins were introduced in denominations of 1 pice, 12, 1 and 2 annas, 14, 12 and 1 rupee. 1 pie coins were added in 1951. In 1961, coins for 1, 5 and 10 pice were issued, followed later the same year by 1 paisa, 5 and 10 paise coins. In 1963, 10 and 25 paise coins were introduced, followed by 2 paise the next year. ₨.1/- coins were reintroduced in 1979, followed by ₨.2/- in 1998 and ₨.5/- in 2002. 2 paise coins were last minted in 1976, with 1 paisa coins ceasing production in 1979. The 5, 10, 25 and 50 paise all ceased production in 1996. There are two variations of ₨.2/- coins: most have clouds above the Badshahi Masjid but many do not. The ₨.1/- and ₨.2/- coins were changed to aluminium in 2007.[citation needed]

Paisa denominated coins ceased to be legal tender in 2013, leaving the ₨.1/- coin as the minimum legal tender.[5] On 15 October 2015, the Pakistan government introduced a revised ₨.5/- coin with a reduced size and weight and having a golden color, made from a composition of copper-nickel-zinc,[citation needed] and also in 2016 a ₨.10/- coin was introduced into circulation.[citation needed]

In 2019 the Pakistan government introduced a commemorative ₨.50/- coin to celebrate the 550th birthday of Sri Gru Nanak Dev Ji and in tribute of opening of new Gurdwara of Kartarpur Pakistan.[6]

Currently circulating coins
Obverse Reverse Value Years in use Composition Obverse illustration Reverse illustration
₨.1/- 1998 – present Bronze (1998-2006)
Aluminium (2007–present)
Quaid-e-Azam,
Muhammad Ali Jinnah
Hazrat Lal Shahbaz Qalandar Mausoleum,
Sehwan Shareef
    ₨.2/- 1998 – present Brass (1998-1999)
Nickel-brass (1999-2006)
Aluminium (2007-)
Crescent and Star Badshahi Masjid, Lahore
    ₨.5/- 2002 – present Cupronickel (2002-2011)
Copper-Zinc-Nickel (2015–present)
Crescent and Star Number "5"
₨.10/- 2016 – 2018 Nickel-brass Crescent and Star Faisal Mosque, Islamabad
₨.50/- 2019 Copper-Zinc-Nickel Crescent and Star Sri Gru Nanak Dev Ji Gurdwara, Kartarpur
For table standards, see the coin specification table.

BanknotesEdit

On 1 April 1948, provisional notes were issued by the Reserve Bank of India and the Government of India on behalf of the Government of Pakistan, for use exclusively within Pakistan, without the possibility of redemption in India. Printed by the India Security Press in Nasik, these notes consist of Indian note plates engraved (not overprinted) with the words GOVERNMENT OF PAKISTAN in English and "Hukumat-e-PAKISTAN" in Urdu added at the top and bottom, respectively, of the watermark area on the front only; the signatures on these notes remain those of Indian banking and finance officials.[7]

Regular government issues commenced in 1948 in denominations of ₨.1/-, ₨.5/-, ₨.10/- and ₨.100/-. The government continued to issue ₨ 1 notes until the 1980s but another note-issuing was taken over by the State Bank of Pakistan in 1953 when ₨.2/-, ₨.5/-, ₨.10/- and ₨.100/- notes were issued. Only a few ₨.2/- notes were issued. ₨.50/- notes were added in 1957, with ₨.2/- notes reintroduced in 1985. In 1986, ₨.500/- notes were introduced, followed by ₨.1,000/- the next year. ₨.2/- and ₨.5/- notes were replaced by coins in 1998 and 2002. ₨.20/- notes were added in 2005, followed by ₨.5,000/- in 2006. Until 1971, Pakistan banknotes were bilingual, featuring Bengali translation of the Urdu text (where the currency was called taka instead of rupee), since Bengali was the state language of East Pakistan (now Bangladesh).[8]

All banknotes other than the ₨.1/- and ₨.2/- feature a portrait of Muhammad Ali Jinnah on the obverse along with writing in Urdu. The reverses of the banknotes vary in design and have English text. The only Urdu text found on the reverse is the Urdu translation of the Prophetic Hadith, "Seeking an honest livelihood is an act of worship." which is حصول رزق حلال عبادت ہے (Hasool-e-Rizq-e-Halal Ibaadat hai).

The banknotes vary in size and colour, with larger denominations being longer than smaller ones. All contain multiple colours. However, each denomination does have one colour which predominates. All banknotes feature a watermark for security purposes. On the larger denomination notes, the watermark is a picture of Jinnah, while on smaller notes, it is a crescent and star. Different types of security threads are also present in each banknote.

Banknotes before the 2005 Series[9]
Image Value Dimensions Main Color Description – Reverse Status
Obverse Reverse
    ₨.1/- 95 × 66 mm Brown Tomb of Muhammad Iqbal in Lahore No longer in circulation
₨.2/- 109 × 66 mm Purple Badshahi Masjid in Lahore
  ₨.5/- 127 × 73 mm Burgundy Khojak Tunnel in Balochistan
  ₨.10/- 141 × 73 mm Green Mohenjo-daro in Larkana District No longer in circulation
₨.50/- 154 × 73 mm Purple and red Alamgiri Gate of the Lahore Fort in Lahore
₨.100/- 165 × 73 mm Red and orange Islamia College in Peshawar
₨.500/- 175 × 73 mm Green, tan, red, and orange The State Bank of Pakistan in Islamabad No longer in circulation
₨.1,000/- 175 × 73 mm Blue Tomb of Jahangir in Lahore

The State Bank has started a new series of banknotes, phasing out the older designs for new, more secure ones.

2005 Series[10]
Image Value Dimensions Main color Description Period
Obverse Reverse Obverse Reverse
₨.5/- 115 × 65 mm Greenish grey Muhammad Ali Jinnah Gwadar port, a large project in Balochistan (Pakistan) 8 July 2008 – 31 December 2012
₨.10/- 115 × 65 mm Green Pink Bab ul Khyber, the entrance to the Khyber Pass 27 May 2006 – present
₨.20/- 123 × 65 mm Brown/orange green Mohenjo-daro in Larkana District 22 March 2008 – present
₨.50/- 131 × 65 mm Purple K2, second highest mountain of the world, in northern Pakistan 8 July 2008 – present
₨.100/- 139 × 65 mm Red Quaid-e-Azam Residency in Ziarat 11 November 2006 – present
  ₨.500/- 147 × 65 mm Rich Deep Green Badshahi Masjid in Lahore
  ₨.1,000/- 155 × 65 mm Dark blue Islamia College in Peshawar 26 February 2007 – present
₨.5,000/- 163 × 65 mm Mustard Faisal Masjid in Islamabad 27 May 2006 – present

Hajj and special anniversary banknotesEdit

Due to the multitude of pilgrims to the Kingdom of Saudi Arabia during the 1950s, the State Bank of Pakistan provided simple exchange facilities for Hajj pilgrims. The issue of special notes for the express use of the pilgrims was introduced. Although other means of exchange were considered, the high level of illiteracy amongst the Pakistani pilgrims and the additional costs that would be incurred through the need to purchase such means prevented the government from these methods of exchange. The State Bank Order to allow the issue of these "Hajj notes" was made in May 1950.

The use of Hajj notes continued until 1978. Until this date, stocks of notes were used without the necessity of printing new notes with the signatures of the later Governors. It is believed that, once the use of Hajj Notes was discontinued, most of the remaining stock of notes were destroyed. However, many notes entered the collector market following their sale to a banknote dealer by the State Bank of Pakistan.

Hajj banknotes
Image Value Main colour Description – Reverse Date of usage
Obverse Reverse
₨.10/- Dark purple Shalimar Gardens in Lahore 1960–1969
₨.10/- Dark blue Mohenjo-daro in Larkana 1970–1976
₨.100/- Dark orange Islamia College (Peshawar) 1970–1976
For table standards, see the banknote specification table.
Special banknote for the 50th anniversary of the Independence of Pakistan
Image Value Main colour Description – Reverse Date of usage
Obverse Reverse
₨.5/- Dark purple Baha-ud-din Zakariya Tomb Multan 1997
For table standards, see the banknote specification table.

Exchange rateEdit

 
US dollar-Pakistani rupee exchange rate

The rupee was pegged to sterling until 1982 when the government of General Zia-ul-Haq changed to a managed float. As a result, the rupee devalued by 38.5% between 1982–83 and 1987–88 and the cost of importing raw materials increased rapidly, causing pressure on Pakistani finances and damaging much of the industrial base. The Pakistani rupee depreciated against the United States dollar until the turn of the century, when Pakistan's large current account surplus pushed the value of the rupee up against the dollar. The State Bank of Pakistan then stabilized the exchange rate by lowering interest rates and buying dollars, in order to preserve the country's export competitiveness.

2008 was termed a disastrous year for the rupee after the elections: between December 2007 and August 2008 it lost 23% of its value, falling to a record low of 79.2 against the US dollar.[11] The major reasons for this depreciation were huge current and trade accounts deficits that had built up since the credit boom in Pakistan after 2002. Due to rising militancy in the NWFP and FATA areas, foreign direct investment began to fall, and the structural problems of the balance of payment were exposed; foreign exchange reserves fell disastrously to as low as US$2 billion. However, by February 2011 Forex reserves had recovered and set a new record of $17 billion. Of that US$17 billion, more than US$10 billion was borrowed money on which interest was payable.[citation needed]

In February 2016 the rupee was ₨.104/66 against US dollar. In December 2017, after holding talks with the IMF, Pakistan agreed to depreciate the rupee and the State Bank of Pakistan (SBP) would now let the currency exchange rate adjust to market conditions after many months, or years, of resisting expectations.[12] The Pakistani rupee touched a new low of ₨.110/67 against the USD, and on 18 July it touched another record new low of ₨.128/26 against USD.[13] It hit another low of ₨.161/50 against the dollar on 26 June 2019.[citation needed]. On 12 March 2021 (1USD=157.15PKR). It has been recovering since then. [14]

Current PKR exchange rates
From Google Finance: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY
From Yahoo! Finance: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY
From XE.com: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY
From OANDA: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY
From fxtop.com: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY

See alsoEdit

NotesEdit

  1. ^ "The News International: Latest News Breaking, Pakistan News". www.thenews.com.pk. Archived from the original on 24 December 2013. Retrieved 28 April 2018.
  2. ^ Hanifi, Shah (11 February 2011). Connecting Histories in Afghanistan: Market Relations and State Formation on a Colonial Frontier. Stanford University Press. p. 171. ISBN 9780804777773.
  3. ^ Munoz, Arturo (30 April 2012). U.S. Military Information Operations in Afghanistan: Effectiveness of Psychological Operations 2001-2010. Rand Corporation. p. 72. ISBN 9780833051561.
  4. ^ "Etymology of rupee". 20 September 2008. Archived from the original on 10 November 2013. Retrieved 25 July 2013.
  5. ^ "The News International: Latest News Breaking, Pakistan News". www.thenews.com.pk. Archived from the original on 24 December 2013. Retrieved 28 April 2018.
  6. ^ "Pakistan issues coin to mark Guru Nanak's 550th birth anniversary". hindustantimes. 15 June 2019. Retrieved 23 June 2020.
  7. ^ Linzmayer, Owen (2012). "Pakistan". The Banknote Book. San Francisco, CA: www.BanknoteNews.com. Archived from the original on 29 August 2012.
  8. ^ Roshaan, Hamid. "A collection of Pakistani Currency Notes". Archived from the original on 13 June 2014. Retrieved 26 May 2014.
  9. ^ "Banknotes and Coins Under Circulation" (PDF). State Bank of Pakistan. Archived (PDF) from the original on 9 September 2008. Retrieved 17 September 2008.
  10. ^ "Pakistan's Banknotes". State Bank of Pakistan. 8 July 2008. Archived from the original on 18 September 2008. Retrieved 17 September 2008.
  11. ^ "Pakistan rupee falls to new low". BBC News. 15 August 2008. Archived from the original on 30 August 2008. Retrieved 17 September 2008.
  12. ^ "Pakistan Depreciates its Currency, Adjusting to Economic Pressures". IndraStra. ISSN 2381-3652. Archived from the original on 26 December 2017.
  13. ^ "Banks' Floating Average Exchange Rates" (PDF). SBP. Retrieved 16 July 2018.
  14. ^ "Rupee recovers against dollar". 22 June 2020.

External linksEdit