Do you know when the first Pakistani coin (currency) put its feet on this planet? Let’s start revolving our minds reel backward to more than 500 years, yes more than 500 years ago when the first Pakistani currency was introduced to the world. And we are talking about the dollar to PKR?
Going back to 1947, Independence Day of Pakistan, Pakistani currency was introduced to the world having the same appearance as of Indian’s currency; however, it was launched with the stamp of Pakistan. After a year of independence in 1948, Pakistan money authorities floated brand new coins of different worth (including paisa and rupee) with a different appearance.
The first Pakistani coin was divided into 16 Anna’s!
Later on, in 1961, one Pak coin was split into 100 Anna’s known as 100 paise. 100 paisa coin was floated for use in the market in 1994 due to the unstable country situation. However, till 1948, different coins of pice, Anna, and rupee were available for the use of the general public. After that, the journey continues, and along with the coins, notes were also floated.
And that journey of Pakistani currency rupee (commonly used) from 19’s till now is full of miseries and hard times. At this point, I can’t stop myself telling the truth.
Pak rupee today is not the same as it was in 1947!
Unfortunately, with a great grieve and mourn, after gathering enough courage, I have to say it that Pakistani currency has lost its worth. This thing pissed me!
This hell like the journey has devalued the Pak currency against the US dollar. At the time of launch of Pak currency, it was the same worth as of Indian currency. Comparing it to international currency (US dollar), one Pak rupee was equal to one dollar.
Alas, Alas, alas!
Pakistani currency was put on the track of depreciation!
The rupee having the same value of the dollar (one rupee per one dollar) starts dropping, making it 141 Rupee per dollar.
What a terrible journey!
Pakistan, to improve the worth of currency, has made an unrecoverable loss. Stating with the fact, Pakistani currency cannot overcome its value. As taking one rupee equal to one dollar is not only unworkable but unthinkable as well.
The crux of the matter is to unfold the factors and the ups and downs that have put one rupee per dollar to 141 rupees in 2019. Along with this time demands that the government must put its blood, sweat, and tears to maintain the worth of currency and stop it from further crashing. As on 13 April 2019, dollar to PKR rate reached its maximum point in the history. That is,
1 US dollar equal to 142.1384 Pak rupee!
The Pak rupee is crashed!
Although it’s already too late and the Pak rupee is crashed but to save it from more and more downfall, it’s time to put out all stops to protect it from further crashing. And the conversion rate from dollar to PKR is at its peak.
PAK Rupee VS US Dollar
Let’s start picturing the events of devalue of Pakistani currency from 19’s to 2019.
Before moving over to the facts and figures have a quick glimpse of the factors that are related to money (currency) and the ups and down in these factors will have a direct effect on the currency of a country. The worth of the coin is largely related to imports and exports of the country, inflation rate, market trends, industrial condition, country stability, trade deficit, inflows, foreign exchange reserves, banking market, and country policies. Although the list is quite extensive, the change in any of these factors affects the value of the currency.
Now it’s time to reveal the picture that shows the path of depreciation of Pak rupee vs. US dollar. While embarking on the path of 3.31 rupees per dollar to 141 rupees per dollar, we will split the journey into two significant portions.
- The first half will list out the incidents of 1947 to 1999.
- The second half will indicate the ups and down from 2000 to 2019.
Get yourself prepared as we are going to crack on the track of PAK Rupee VS US Dollar!
The Era of 1947 to 1999
Undoubtedly, the Pak rupee was started devaluing from the beginning but the with tortoise speed. Despite being an agriculturally productive country, the industry is the base of every economy. In 1947, at the time of independence, Pakistan introduced its currency with the same worth as of Indians and US.
In 1947, rupee changed hands with the dollar at RS. 1 per dollar!
Amazing! More to this, at that time 1 rupee consist of 16 Annas. But as time passes, Pakistani rupee started depreciating gradually. Finance authorities observed the fluctuation in the value of Pak rupee in 1950. The amount of Pak rupee against US dollar reaches to 3 rupees per dollar till 1954. And it remains at average Rs 3.31 per dollar till 1964.
As a fact, it was the starting point when Pakistani currency was cracked on the path of downfall.
Here the salient point is that the downfall of the currency can be controlled at that time. As it was only RS. 3.31 per dollar. Unfortunately, negligence of higher authorities put the Pak rupee towards downfall. More to this, at that time, Pakistan was not under the pressure of foreign debts, which is one of the prime cause of Pak rupee crash.
At that time, the critical reason can be the unstable country condition as it was recently-separated. Still, there was not any major downfall in the worth of Pak rupee as compared to the US dollar. However, the outcome of the 1971 war was nasty for Pakistani rupee as the rupee hit RS 8 per dollar in 1972. In the next year, it reaches till RS 9 per dollar. Still, there was not any major downfall in the worth of Pak rupee as compared to US dollar till 1981.
The First Significant Downfall in the Value of Pak Rupee
The depreciation of Pak rupee was majorly started in 1982 when it adopted the speed of rocket and major devalue in the worth of currency was observed. The ground of this severe crash in the money was because of the financial conditions and the industry. At that time, economic conditions were under heavy pressure, and the production was suffering from downfall. Due to this, Pak currency was devalued by 38.5%.
It was a severe breakdown in the currency that collapse the worth of Pak rupee. Plus it was the point of the downfall of Pakistani currency that despite the tireless effort, never regain its value. After that, Pak rupee faced more and more crises.
All for Naught!
In the following years, the rupee was unable to maintain a stable value against US dollar as there were fluctuations in the value of the rupee. Fortunately, variations were not of high cost due to which it does not leave any terrible outcomes.
But who knows when he had to go through a rough patch!
Breakdown of Pak Rupee in 1987
Another major failure hit the Pak rupee from 1987 to 1988. During this time frame, the ratio of the devaluing of rupee was the same as it was in 1982. In other words, rupee again faced 38.5% downfall. Second major downfall till 1988.
Wait; stay here. The journey of devaluing does not end. But yes it lowers down its speed.
In the same year, the imports of Pakistan start touching the sky, and as we already discussed high imports affects the economy severely. Pakistan has to pay more money due to the decrease in the value of its currency. It puts the country under financial crises, and the industry was also severely damaged. This arrival of these factors, along with the depreciation of money, puts the country on the bed of thorns. Only exporters were benefited from these fall in the worth of rupee as they will get great money from their exports.
But, but it all was not going in favor of Pakistan. The value of money was falling sharply, which leads to low purchasing power. Along with the other factors that are the primary cause of Pak rupee downfall, inflation is one of the root cause.
Besides this, the core point to mention here is that after the second major downfall of Pak currency against US dollar in 1988, Pakistan joins hands to plant the seed to secure the worth of money and to eradicate inflation and other causes of the devaluation of Pak rupee.
A wave of hope arises that Pak rupee will regain its worth!
Even if it fails to regain its value, it will not drop anymore!
These collaborative efforts bear fruits as inflation was entirely controlled from 1997 to 1999. Plus this, the Pak rupee slow down its speed of depreciation against US dollar. Although it was on the same track of downfall after 1988, there was not any severe major trauma.
It seems that the collective efforts bear fruits. Still, Pakistan needs to keep its eye on the ball to avoid any shocking situation.
From 1988 to 1990, Pak rupee was devalued by 2 points against the US dollar. In 1990, the Pak rupee value is recorded as 22 Rupee per dollar. No doubt, after this, there was not a sudden and rocket speed downfall of Pak value. But there was a little bit fluctuation in the amount of Pak rupee. Unfortunately, this fluctuation was on the lower side indicating an alarming situation to financial authorities that there are still chances of further downfall
This process of variation continues until the century turns around and the era of 20’s land on this planet. At the end of the 19th century, Pak rupee is recorded approximately Rs 53 per dollar.
The Gist of 1947 to 1999
Briefly stating the first half (1947 to 1999) depicts massive ups and down in the worth of the rupee. Two major downfalls are observed in this period that put the country under financial pressure and badly hits the industry of the country. One in 1982 and the second in 1987. In both the hard hits, worth of rupee drops with 38.5%. However, in the remaining years, the rupee value was on a constant fluctuation. As rupee shake hands with the dollar at the rate of Rs 3.31 per dollar in the beginning. And at the end of 1999, rupee joins the side with dollar with the price of Rs 53 per dollar.
The era of 2000 to present – Second Half
As soon as Pakistan enter into the period of 20’s the currency seems to be stable against the dollar. However, its value was in shivering state as compared to the US dollar, but the shaking situation was bearable. During 2000 to 2007, Pak rupee seems to be quite stable; however, its worth does not remain the same as there were only a few points decrease in the value of the rupee.
Pakistan landed in the ’20s with the rate of approximately RS. 53 per dollar. During this era, the Pakistani authorities join hands with the public as the collective efforts were required to maintain the worth of rupee. Pakistan has already faced significant hits that shake the root of the country. Now it cannot bear another significant downfall in the rupee value.
And from 2000 to 2007, Pakistan was stable to maintain the worth of its currency to some extent as the drawback of only a few units is observed in this time. In 2007, the average Pak rupee value against the US dollar was RS 61.
As soon as Pakistan enters into 2008, the coins flip towards downfall. While digging deep into the research of Pak rupee vs. US dollar, one of the major bases of the destruction of Pak currency is inflation – that is on a continuous rise since 1947.
Major Downfall of Pak rupee – 2008
In 2008 there was another major crash of Pakistan currency against US currency. It hits the value of RS. 79 per dollar in 2008 – 3rd major downfall in the history of Pakistani currency after the destruction in 1988.
During the last months of 2008, the economy of Pakistan undergoes significant crises. The inflation rate hit its peak, that is 25.3%. The high inflation rate and the downfall of a currency against the dollar put the country in a dreadful condition.
It resulted in the low purchasing power as the prices shoot up and cause difficulties for the ordinary person to fulfill its needs. Industries also faced crises as the prices of the goods rise sharply. The exporters were finding it difficult to maintain the costs of the commodities as the raw material become expensive. On the other hand, importers have to pay more as the worth of rupee fall.
Fortunately, that black night went away!
In 2009, the value of Pakistan rupee was quite stable as it remains to average RS. 83 per dollar for the whole year. But as the economy of Pakistan was not stable, there was a fluctuation in 2010. The value of rupee fluctuates from RS. 83 to RS. 86 per dollar for the whole year.
Pakistan enters 2011 with the Pak rupee value RS.85 per dollar, and at the end of the year, the value of Pak rupee was 89 per dollar. At the end of 2012, the cost of Pak rupee reaches RS. 97 per dollar. The readings show that the value of Pak rupee was on constant shivering state. However, there was not any major breakdown.
However, from 2009 to 2012, the value of Pak rupee was unstable as it was on constant fall. Because this time Pakistan currency was not under pressure of its crises, but international situations were also alarming. It was the point when Pakistan need for energy sharply rises on one side, and the other hand the prices of energy touches the sky in the international market. This rise in global prices and decrease in-country resources puts the country in an egregious situation. As a result, the rupee value falls more and more.
1 Rupee per Dollar Reaches 100 RS per Dollar
As the cost of rupee was in high fluctuation at the end of 2012, the value of rupee drops further against the dollar. At this point, despite putting the blood, sweat, and tears, Pakistan was unable to recover the value of its currency against the US. The situation remains the same in the following years as well.
Unfortunately, Pak rupee touched the value of RS.100 per dollar on 4th July 2013!
The era of 2013 to onwards was not only terrible for Pakistan currency but was not go in favor of political situation. It was an era when Pakistan was suffering from trauma because of the unstable country situation. At that point, Pakistan was facing political unitability, energy crises, inflation, decrease in-country resources, and much more. To overcome all these issues, Pakistan fight tooth, and nail but all these bundles of disasters effects mainly on the value of Pakistani currency. Still, despite the unbearable results, authorities don’t stop working. They keep their nose to the grindstone, but all that bring no gain.
The journey of Pakistani currency against US dollar continues, and rupee reaches 108 per dollar during 2013. The value of rupee against dollar was unstable, and it was on continuous shaking state that disturbs the economy of Pakistan. The industrial sector was at high risk, businesses were fighting to cover their expenses, and the ordinary person was facing difficulty in fulfilling its needs.
Rupee enters 2014 with the value of RS 105 per dollar. However, in the middle of the year, Pak rupee value increases against the dollar as on 15 April 2014 it was RS 96 per dollar. However, at the end of the year, 31st December 2014, Pak rupee value drops to RS 100 per dollar.
The period of 2015 and 2016 seems to be quite stable as there was no high fluctuation the value of the rupee. In 2015, the amount of rupee did not drop lower than RS 105 per dollar. Similarly, in 2016, the value of rupee was stable as it remains between RS 104 to 105 per dollar.
The period of 2017 was also stable for Pakistani currency except for the last few days of December. Due to the political instability at the end of the year, the value of rupee shoots up from RS 105 per dollar to Rs 110 per dollar on 14 December 2017.
Rupee Crash in 2018
On 1st January 2018, Pak rupee hit 110 RS per dollar, making it more difficult for the country to stop it from further falling. The year of 2018 brings another major downfall in the history of Pakistan currency. In this year, the rupee crashed totally. Its value was decreasing rapidly due to instability in the country.
You will be shocked to know that it was the biggest downfall of Pak currency as compared to other breakdowns. As on 21st March 2018, it was RS. 115 per dollar and on 19th June 2018 Pak rupee was 121 per dollar. This rocket speed of depreciation of Pakistan currency didn’t stop here. It continues and with the same blistering pace. It boosted its rate as on 17th July 2018 it Pak rupee was RS. 127 per dollar and on 19th July 2018 it was RS. 129 per dollar.
What a disaster!
The sharp downfall of Pak currency leaves a negative impact on the world. Due to the massive drop in the value of rupee, it was included in the list of worst currencies of Asia. Unfortunately, despite putting the blood and sweat, Pakistan fails to maintain the worth of its money.
Pak rupee was declared as the worst performing currency of Asia in 2018!
Alas! All for Naught!
Unfortunately, Pakistan enters 2019 with the incredible value of rupee that is RS 139 per dollar.
On 13 April 2019 Pakistan reaches the highest value of Pak rupee downfall making it RS 142.1384 per dollar!
The drastic decrease in the value of Pak rupee has created a wave of downfall. The industrial sector is facing massive crises. The prices of the commodities are rising sharply, and the businesses are unable to cope with the current trends of the rupee.
The Gist of 2000 to 2019
Fortunately, Pakistan enters the era of 2000 with the quite stable value of the rupee. During the starting years, the amount of rupee didn’t fall, and it remains stable. However, after 2007, the value of rupee starts fluctuating and reaches to Rs 100 per dollar in 2013.
After that, the rupee was unable to maintain its worth; the era of 2018 seems to be the worst in the history of Pakistani currency against the US dollar. In 2018, Pak rupee reached the maximum value of downfall that is RS 142 per dollar. Along with this, in 2018, Pak rupee was declared as the worst-performing currency of Asia.
Now it’s time for Pakistan authorities to wake up from a deep sleep. As Pakistan cannot suffer more and it’s hard to digest RS 142 per dollar. For the nourishment of Pak currency, we need to put all the stops immediately.
Wake up before it gets too late!
Stay tuned to see what happens next in the value of the rupee. Will Pak rupee will be able to beat the dollar and maintain its value, or the rupee will crash further.