The Rupee's Losing Battle: How 1 USD to PKR Evolved Over 77 Years

The journey of Pakistan’s currency against the US dollar tells a compelling story of economic challenges, policy shifts, and structural pressures. From the nation’s independence in 1947 to 2024, the Pakistani rupee has experienced dramatic transformations.

The Stable Era (1947-1970)

When Pakistan gained independence, 1 USD to PKR in 1947 was pegged at just 3.31 rupees. Remarkably, this rate remained unchanged for nearly a decade—holding steady at 3.31 PKR through 1954. The first adjustment came gradually in 1955, when the rate moved to 3.91 PKR, followed by a more significant shift to 4.76 PKR in 1956. This peg at 4.76 PKR persisted for the next 15 years, demonstrating the government’s commitment to currency stability during the nation’s formative decades.

The Breaking Point (1972-1980s)

The early 1970s marked a watershed moment. In 1972, the exchange rate suddenly jumped to 11.01 PKR per dollar—a shock devaluation reflecting economic pressures and inflation. By 1973, it settled at 9.99 PKR, where it remained locked until the early 1980s. This devaluation signaled Pakistan’s entry into an era of currency pressure that would only intensify.

Accelerating Depreciation (1989-2000)

The late 1980s and 1990s witnessed rapid depreciation. In 1989, the rupee had weakened to 20.54 PKR per dollar. The pace of deterioration quickened dramatically: the rate reached 23.80 PKR by 1991, surpassed 30 PKR in 1994, and by 1999 had plunged to 51.90 PKR. This period reflected structural economic challenges, inflation, and recurring balance-of-payments crises.

Crisis Years (2001-2008)

The early 2000s saw further deterioration. Following 2001, the rupee weakened sharply to 63.50 PKR, though it recovered partially in subsequent years. However, the 2008 global financial crisis reversed any gains, pushing the rate to 81.18 PKR by year-end. The cumulative effect was stark: what cost 1 dollar in 1947 now required over 81 rupees.

Modern Collapse (2012-2024)

The deterioration accelerated once more. From 96.50 PKR in 2012, the rupee weakened steadily through the 2010s, reaching 110 PKR by 2017. The crisis intensified dramatically: 139.21 PKR in 2018, then 163.75 PKR in 2019. The pandemic era brought further pressure—168.88 PKR in 2020.

The most severe period came in 2022-2023, when the rupee collapsed to 240 PKR and then 286 PKR respectively—a staggering 96-fold depreciation from independence. By 2024, while it recovered slightly to 277 PKR, this remains catastrophic compared to the original peg.

What This Means

Pakistan’s rupee has depreciated by over 8,200% since 1947. What purchased 3.31 rupees in independence now costs 277. This reflects decades of inflation differentials, external pressures, structural deficits, and policy challenges that have accumulated relentlessly across generations.