How Much Was 1 PKR Worth in 1947? A Journey Through Pakistan's Currency Depreciation

The Story Behind Pakistani Rupee’s 77-Year Decline Against the Dollar

When Pakistan gained independence in 1947, the Pakistani Rupee held a relatively strong position: 1 USD equaled just 3.31 PKR. This exchange rate remained remarkably stable throughout the 1950s, reflecting a period of economic stability immediately after partition. For nearly a decade, Pakistani businesses and citizens enjoyed consistent currency value.

The First Major Shift: 1950s-1970s Transition

The first significant depreciation occurred in the mid-1950s. By 1955, 1 USD was worth 3.91 PKR, and by 1956, it jumped to 4.76 PKR. This rate held steady for the next 15+ years, suggesting external pressures and policy adjustments during that era. However, a dramatic change arrived in 1972 when 1 USD suddenly commanded 11.01 PKR — nearly a 130% devaluation in a single year.

The Stabilization Period: 1970s-1980s

Following that shock, the rupee found a new equilibrium around 9.99-10 PKR per USD for most of the 1970s and early 1980s. This plateau suggests a period of currency pegging or exchange rate controls that kept the depreciation from accelerating further. Yet beneath the surface, inflation and economic challenges were building pressure.

Accelerated Depreciation: 1989-2000

The late 1980s marked the beginning of sustained rupee weakness. By 1989, 1 USD = 20.54 PKR, and by 1999, it had nearly tripled to 51.90 PKR. This decade witnessed rapid depreciation — from roughly 10 PKR to over 50 PKR — reflecting years of economic instability, debt accumulation, and structural imbalances in Pakistan’s economy.

The Modern Era: 2000-2024

The 21st century told an even starker story of currency erosion:

• 2000-2008: Gradual decline from 51.90 PKR to 81.18 PKR
• 2008-2018: Accelerated depreciation from 84.10 PKR to 139.21 PKR (post-financial crisis period)
• 2018-2024: Dramatic collapse — from 139.21 PKR in 2018 to 277 PKR in 2024

The sharpest recent declines came between 2022-2023, when the rupee fell from 240 PKR to 286 PKR per dollar, reflecting severe external account pressures and IMF bailout requirements.

What This Means: Purchasing Power Erosion

To put this in perspective: what cost 1 rupee in 1947 would now cost roughly 84 times more. This isn’t just a number game — it represents massive inflation, reduced household purchasing power, and decades of economic challenges. The Pakistani rupee has lost approximately 98.8% of its value against the dollar since independence.

The currency’s journey mirrors Pakistan’s broader economic story: periods of stability followed by structural crises, each resolution temporary before the next challenge emerged. Today’s 277 PKR per USD rate reflects the cumulative effect of trade deficits, capital flight, inflation differentials, and fiscal imbalances that have accumulated over nearly eight decades.