The Pakistani rupee, abbreviated PKR, is the national currency of Pakistan. The Pakistani rupee is made up of 100 paise and is represented locally by the symbol Rp or Rs. The PKR is often referred to as rupees, rupaya, or rupaye. The word Rupee originates from the Sanskrit word rup or rupa, which means "silver" in many Indo-Aryan dialects.
Understanding the Pakistani Rupee
When Pakistan became independent from Britain in 1947, the Pakistani rupee replaced the Indian rupee. Initially, they remained using the British notes and simply stamped "Pakistan" over them until printing their own notes the following year.
The rupee was decimalized in 1961, replacing the 16 annas that the rupee was originally divided into with 100 paise (paisa singular).
Coins denominated in paisa were no longer legal tender after 2013. The 1 Rupee coin is the minimum legal tender. Later, on October 15th, 2015, a smaller 5 rupee coin was introduced and a Rs. 10 coin was introduced in 2016.
Pakistan's Economic Prospects
Like most emerging market currencies, the Pakistani rupee plunged during the financial crisis, losing over 20% against the U.S. dollar in 2008. The fall of the rupee was exasperated by its large current account deficit.
Because of the fragility and volatility of its economy, the Pakistani rupee does not have any strong correlations with other currencies, financials, or commodities. Although ranking among the lowest economic growth rates in the 2010s, Pakistan continues to benefit from increased investments from China, and the return of Iran to international markets is expected to boost mutual trade. Additionally, the China-Pakistan Economic Corridor (CPEC), a 3,000-kilometer network of roads, railways, and oil and gas pipelines from Pakistan to China, is expected to bolster the Pakistani economy through to 2030. While growth in Pakistan at the end of 2019 was less than projected, a three-year program in conjunction with the International Monetary Fund (IMF) aimed at stabilization and structural reform is promising to address macroeconomic issues