How much was 1 USD to PKR in 1947?
At a time when the Pakistani Rupee is experiencing its lowest exchange rate against the US dollar, people are curious about the history of the PKR-USD relationship since independence. The question now is, what was 1 USD to PKR in 1947, and how did this journey progress?
Following the dissolution of the British Raj, India split into two separate states: Pakistan, which has a majority of Muslims, and India, which has a majority of Hindus. Both countries initially used pre-existing coins bearing a mark from the government of Pakistan. Later, in 1948, Pakistan’s state bank released new banknotes.
It was assumed that 1 USD to PKR in 1947 was equal. But it is not true. Some economists argue that there is no exact value that can be determined because Pakistan had no balance for borrowing outside the country on the eve of independence, so the PKR was most likely equal to USD.
In an effort to increase government control over the economy, Pakistani Prime Minister Zulfikar Ali Bhutto nationalised all major banks in the country in 1971. This action caused the Pakistani rupee’s value to plummet, and it wasn’t until 1978 that the currency began to recover.
The opposing argument is that the Pakistani Rupee was never equal to the US Dollar because Pakistan was a British colony with a direct link to British Pounds. The Pakistani rupiah was pegged to the British pound.
The following graph depicts the PKR against the US dollar from 1947 to 2021:
Pakistani Rupee VS 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 to PKR in 1947 was equal to PKR 3.31.
USD’s Acceptance as a Foreign Exchange Currency:
Pakistan’s government did not adopt the US dollar until 1947. The USA’s economy predominated the global economy in early 1970. As a result of USA economic influence, Pakistan’s government adopted USD as a foreign exchange currency on September 17, 1971. After that, we occasionally observed a strengthening of the Pakistani rupee and intermittent US Dollar dominance. On August 1, 2022, we observed the highest-ever exchange rate of one USD for 256.4 PKR.
Elevation Periods of USD to PKR:
First Elevation Period: When President Zia ul Haq switched the currency to a managed float, the USD against the PKR surged to new highs. As a result, the PKR lost 38.5% of its value, and import costs skyrocketed. Pakistan’s State Bank stabilised the situation and maintained the current account surplus, causing the PKR to appreciate against the USD.
2nd Elevation Period: Since 1982, the rate of 1 USD to PKR has risen in comparison to the rate of 1 USD to PKR in 1947. In 2008, the PKR lost 23% of its value against the USD, falling to nearly 79.2 Rs. per USD. Foreign investment and foreign exchange reserves were depleted as a result of the unpredictability of political conditions and a lack of security.
3rd Elevation Current Status: At the time of independence, Pakistan’s economy was more vibrant and long-lasting than it is today, as evidenced by the lowest rate of 1 USD to PKR. However, due to excessive loans and interest rates, as well as unstable political conditions, the PKR is now at its lowest level in history, with 1 USD equaling 178.15 rupees.
USD to PKR History 1947 to 2022
- 1 USD to PKR in 1947: 1 USD=3.31 PKR.
- 1948 1 USD=3.31 PKR.
- 1949 1 USD=3.31 PKR.
- 1950 1 USD=3.31 PKR.
- 1951 1 USD=3.31 PKR.
- 1952 1 USD=3.31 PKR.
- 1953 1 USD=3.31 PKR.
- 1954 1 USD=3.31 PKR.
- 1955 1 USD=3.91 PKR.
- 1956 1 USD=4.76 PKR.
- 1957 1 USD=4.76 PKR.
- 1958 1 USD=4.76 PKR.
- 1959 1 USD=4.76 PKR.
- 1960 1 USD=4.76 PKR.
- 1961 1 USD=4.76 PKR.
- 1962 1 USD=4.76 PKR.
- 1961 1 USD=4.76 PKR.
- 1962 1 USD=4.76 PKR.
- 1963 1 USD=4.76 PKR.
- 1964 1 USD=4.76 PKR.
- 1965 1 USD=4.76 PKR.
- 1966 1 USD=4.76 PKR.
- 1967 1 USD=4.76 PKR.
- 1968 1 USD=4.76 PKR.
- 1969 1 USD=4.76 PKR.
- 1970 1 USD=4.76 PKR.
- 1971 1 USD=4.76 PKR.
- 1972 1 USD=11.01 PKR.
- 1973 1 USD=9.99 PKR.
- 1974 1 USD=9.99 PKR.
- 1975 1 USD=9.99 PKR.
- 1976 1 USD=9.99 PKR.
- 1977 1 USD=9.99 PKR.
- 1978 1 USD=9.99 PKR.
- 1979 1 USD=9.99 PKR.
- 1980 1 USD=9.99 PKR.
- 1981 1 USD=9.99 PKR.
- 1982 1 USD=11.85 PKR.
- 1983 1 USD=13.12 PKR.
- 1984 1 USD=14.05 PKR.
- 1985 1 USD=15.93 PKR.
- 1986 1 USD=16.65 PKR.
- 1987 1 USD=17.4 PKR.
- 1988 1 USD=18 PKR.
- 1989 1 USD=20.54 PKR.
- 1990 1 USD=21.71 PKR.
- 1991 1 USD=23.8 PKR.
- 1992 1 USD=25.08 PKR.
- 1993 1 USD=28.11 PKR.
- 1994 1 USD=30.57 PKR.
- 1995 1 USD=31.64 PKR.
- 1996 1 USD=36.08 PKR.
- 1997 1 USD=41.11 PKR.
- 1998 1 USD=45.05 PKR.
- 1999 1 USD=51.90 PKR.
- 2000 1 USD=51.90 PKR.
- 2001 1 USD=63.5 PKR.
- 2002 1 USD=60.5 PKR.
- 2003 1 USD=57.75 PKR.
- 2004 1 USD=57.8 PKR.
- 2005 1 USD=59.7 PKR.
- 2006 1 USD=60.4 PKR.
- 2007 1 USD=60.83 PKR.
- 2008 1 USD=81.1 PKR.
- 2009 1 USD=84.1 PKR.
- 2010 1 USD=85.75 PKR.
- 2011 1 USD=88.6 PKR.
- 2012 1 USD=96.5 PKR.
- 2013 1 USD=107.2 PKR.
- 2014 1 USD=103 PKR.
- 2015 1 USD=105.20 PKR.
- 2016 1 USD=104.6 PKR.
- 2017 1 USD=110.01 PKR.
- Dollar to PKR in 2018
- 2019 1 USD=163.75 PKR.
- 2020 1 USD=168.88 PKR.
- 2021 1 USD=179.16 PKR.
- 2022 1 USD=223 PKR (Sept)
Brief History of Pakistani Rupee
This country doesn’t have its own currency on Formation. In Pakistan, there was no mint, no Texel, and no central bank. One day prior to partition, on August 13, 1947, the Governor-General of United India issued the Pakistani Currency and Reserve Bank Order 1947 to address this issue.
This Order established the Reserve Bank of India as the common currency authority for India and Pakistan until September 30, 1948.
It was intended to provide a one-year buffer period for a newborn state to establish its own currency.
The Reserve Bank was legal tender at the time. Pakistan launched its currency notes on April 1st, with the inscription “Government of Pakistan” in both Urdu and English.
For a period of seven months, notes issued by the Reserve Bank of India and the Government of India were still in use in Pakistan. The top of the white area on these notes was set aside for the watermark, which read “GOVERNMENT OF PAKISTAN” in English; at the bottom of the white area, the phrase is written in Urdu as “Hakoomat-e-Pakistan.”
