The Pakistani rupee (; ISO code: PKR; symbol: ; abbreviation: Re (singular) and Rs (plural)) is the official currency of the Islamic Republic of Pakistan. It was formerly divided into one hundred paisa (); however, paisa-denominated coins have not been legal tender since 2013. The issuance of the currency is controlled by the State Bank of Pakistan. It was officially adopted by the Government of Pakistan in 1949. Earlier the coins and notes were issued and controlled by the Reserve Bank of India until 1949, when it was handed over to the Government and the State Bank of Pakistan, by the Government and the Reserve Bank of India.
In Pakistani English, large values of rupees are counted in thousands; lac (hundred thousands); crore (ten-millions); arab (billion); kharab (hundred billion). Numbers are still grouped in thousands.
History
thumb|right|upright=1.15|Rupee coin, struck in silver, used in the [[state of Bahawalpur before 1947.]]
thumb|right|upright=1.15|Rupee coin, struck in gold, used in the [[state of Bahawalpur before 1947.]]
thumb|right|upright=1.15|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", 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 Pakistan (Monetary System and Reserve Bank) Order, 1947 was issued on 14 August 1947, by the Governor General of pre-partition British India, following the advice of an expert committee. It designated the Reserve Bank of India (RBI) as the temporary monetary authority for both India and Pakistan until 30 September 1948. During this transitional period, currency notes issued by the RBI and the Government of India were to remain legal tender in Pakistan. The order also allowed these notes to bear inscriptions of Government of Pakistan in Urdu and English, to be circulated from 1 April 1948. Like the Indian rupee, it was originally divided into 16 annas, each of 4 pice or 12 pie.
For the first seven months following partition, currency issued by the RBI and the Government of India continued to circulate in Pakistan. Modified RBI notes in denominations of 2, 5, 10, and 100 rupees, and 1-rupee notes from the Government of India were later introduced. The modifications involved inscribing Government of Pakistan in English and "Hakumat-e-Pakistan" in Urdu on the front of the notes.
{| class="wikitable"
! colspan="5" | Currently circulating coins
|-
! Value
! Years in use
! Composition
! Obverse illustration
! Reverse illustration
|-
| Re. 1/-
| 1998 – present
|Bronze (1998–2006)<br />Aluminium (2007–present)
|Quaid-e-Azam,<br/>Muhammad Ali Jinnah
| Hazrat Lal Shahbaz Qalandar Mausoleum,<br/>Sehwan Shareef
|-
| Rs. 2/-
| 1998 – present
|Brass (1998–1999)<br />Nickel-brass (1999–2006)<br />Aluminium (2007–)
| rowspan="3" | Crescent and Star
|Badshahi Masjid, Lahore
|-
| Rs. 5/-
| 2002 – present
|Cupronickel (2002–2011)<br />Copper-Zinc-Nickel (2015–present)
| Number "5"
|-
| Rs. 10/-
| 2016 – present
|Nickel-brass
|Faisal Mosque, Islamabad
|-
| colspan="5" |
|}
Banknotes
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. Additionally, the United Kingdom's Thomas De La Rue and Company, along with Bradbury Wilkinson and Company, manufactured various denominations for Pakistan.
The PSPC began issuing its own 1- and 5-rupee notes in the fiscal year 1952-53. These notes resembled those previously produced by Thomas de la Rue & Company, but the 1-rupee note featured a notable change: a blue back without under-print, different from the purple back of the British versions. This new design was circulated on 31 January 1953.
|-
! Value !! Dimensions !! Main color !! Description – Reverse !! Status
|-
| Rs. 1/- || 95 × 66 mm || Brown || Tomb of Muhammad Iqbal in Lahore || rowspan="8" | No longer in circulation
|-
| Rs. 2/- || 109 × 66 mm || Purple || Badshahi Masjid in Lahore
|-
| Rs. 5/- || 127 × 73 mm || Burgundy || Khojak Tunnel in Balochistan
|-
| Rs. 10/- || 141 × 73 mm || Green || Mohenjo-daro in Larkana District
|-
| Rs. 50/- || 154 × 73 mm || Purple and red || Alamgiri Gate of the Lahore Fort in Lahore
|-
| Rs. 100/- || 165 × 73 mm || Red and orange || Islamia College in Peshawar
|-
| Rs. 500/- || rowspan="2" | 175 × 73 mm || Green, tan, red, and orange || The State Bank of Pakistan in Islamabad
|-
| Rs. 1,000/- || 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.
{|class="wikitable" style="font-size:90%"
|+2005 series
! rowspan="2" |Value
! rowspan=2|Dimensions
! rowspan=2 colspan=2|Main colour
! colspan=3|Description
! colspan=3|Date of
! rowspan=2|
|-
!Obverse
!Reverse
! Watermark
! issue
! withdrawal
! lapse
|-
| Rs. 5/-
| rowspan="2" | 115 × 65 mm
| style="background:#80A0C0;width:0"| ||Greenish grey
| rowspan="9" | Muhammad Ali Jinnah
| Gwadar Port
| Muhammad Ali Jinnah and "5"
| 8 July 2008
| 31 December 2011
| 31 December 2012
|
|-
| Rs. 10/-
| style="background:#C0C080"| ||Green
| Bab-e-Khyber (entrance to the Khyber Pass)
| Muhammad Ali Jinnah and "10"
| 27 May 2006
| colspan="2" rowspan="8" |Current
|
|-
| rowspan="2" |Rs. 20/-
| rowspan=2|123 × 65 mm
| style="background:#C08080"| ||Burgundy
| rowspan=2|Mohenjo-daro
| rowspan=2| Muhammad Ali Jinnah and "20"
| 13 August 2005
|
|-
| style="background:#FFC080" | ||Orange
| 22 March 2008
|
|-
| Rs. 50/-
| 131 × 65 mm
| style="background:#C080FF"| ||Purple
| K2
| Muhammad Ali Jinnah and "50"
| 8 July 2008
|
|-
| Rs. 100/-
| 139 × 65 mm
| style="background:#FF8080"| ||Red
| Quaid-e-Azam Residency
| Muhammad Ali Jinnah and "100"
| 11 November 2006
|
|-
| Rs. 500/-
| 147 × 65 mm
| style="background:#80C080"| ||Deep Green
| Badshahi Mosque
| Muhammad Ali Jinnah and "500"
| 11 November 2006
|
|-
| Rs. 1,000/-
| 155 × 65 mm
| style="background:#80C0FF"| ||Blue
| Islamia College in Peshawar
| Muhammad Ali Jinnah and "1000"
| 26 February 2007
|
|-
| Rs. 5,000/-
| 163 × 65 mm
| style="background:#C0A080"| ||Brown
| Faisal Mosque
| Muhammad Ali Jinnah and "5000"
| 27 May 2006
|
|-
| colspan="11" |
|}
Special Banknotes
Haj Pilgrim Banknotes
Pakistan put foreign exchange controls in place in 1949, restricting the export and import of currency except for when needed for the Haj in Saudi Arabia. This created an opportunity for smuggling, leading Pakistan to issue special Haj pilgrim notes for use by pilgrims. These were differentiated by an overprint in English "For pilgrims from Pakistan for use in Saudi Arabia and Iraq".
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 Haj notes was made in May 1950.
A new series of notes was released in 1972, under the name of the State Bank of Pakistan rather than the Government of Pakistan. These had an Urdu overprint as well as an English one, saying "For Hajj [sic] pilgrims from Pakistan for use in Saudi Arabia only". New notes were printed in 1975 and 1978, reflecting changes in the standard notes.
State Bank's 75th Anniversary Banknote
On July 4, 2023, State Bank of Pakistan (SBP) Governor Jameel Ahmad introduced a commemorative Rs. 75 banknote to celebrate the central bank's 75th anniversary.
Security Features
The Rs75 commemorative note is equipped with security features as with the other currency notes. These include the Urdu numeral '75' which appears complete when the note is held in the light, Pure Image security thread with pulsing holographic rainbow effect and micro-lettering of 'SBP' and '75', among others.
Moreover, the portraits and numbers on the note have raised printing, allowing identification of the banknote by the visually impaired.
Controversies Regarding Legal Status
During Eid al-Fitr, shopkeepers across Pakistan refused to accept Rs. 75 notes, sparking rumours about the note’s possible demonetization.
In response, SBP spokesperson Abid Qamar posted a video on the central bank’s official Twitter account, reassuring the public that the Rs. 75 commemorative note is fully valid for transactions. He explained that the SBP issues all currency under Section 25 of its Act, and the Rs. 75 note has no expiration date.
Qamar also dismissed rumors that the government had withdrawn or discontinued the banknote.
The commemorative note issued in 2022 for Pakistan’s 75th independence anniversary featured Quaid-e-Azam, Fatima Jinnah, Allama Iqbal, and Sir Syed Ahmad Khan. This selection stirred some debate, as certain individuals felt the omission of figures like Pakistan’s first Prime Minister, Liaquat Ali Khan, was significant.
|-
| 139 × 65 mm
| style="background:#80C0FF"| ||Blue
| Muhammad Ali Jinnah, Building of the State Bank of Pakistan
| Fatima Jinnah
| July 2023
|
|-
|colspan="9"|
|}
Exchange rate
thumb|US dollar-Pakistani rupee exchange rate
Between 1948 and July 1955, the Pakistani rupee was effectively pegged to the U.S. dollar at approximately Rs.3/<small>31</small> per U.S. dollar. Afterwards, this was changed to approximately Rs.4/<small>76</small> per U.S. dollar, a devaluation of 30%, to match the Indian rupee's value. This fixed exchange rate was maintained until 11 May 1972, in which the rupee was devalued to Rs.11/- per dollar.
Initially, the Indian and Pakistani rupees were at parity until sterling was devalued in 1949, in which India followed suit but Pakistan did not. This caused the Pakistani rupee to be valued at a 44% premium to the Indian rupee until the Pakistani rupee was devalued in 1955, returning to parity with the Indian rupee. This parity lasted until India devalued their currency in 1966.
Since the United States dollar suspension in 1971 of convertibility of paper currency into any precious metal, the Pakistani rupee has been fiat money. Before the collapse of the Bretton Woods system, the currency was pegged at a fixed exchange rate to the United States dollar for international trade, with the dollar convertible to gold for foreign governments only.
The rupee was pegged to the Pound 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, 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 Rs.79/<small>20</small> against the US dollar, due to fears that President Pervez Musharraf would be impeached for his role in the 1999 Pakistani coup d'état.
The Pakistani rupee gained value from the end of September until mid-October 2023, when Pakistan's Federal Investigation Agency embarked on a country-wide raid on exchange companies involved in illegal dollar transactions, which involved the buying and selling of dollars through informal channels without documentation. Since then, the Pakistani rupee became the best-performing currency of September 2023 against the US dollar.