The Pakistani rupee (ISO code: PKR) is the official currency in the Islamic Republic of Pakistan.

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.

[4] During this transitional period, currency notes issued by the RBI and the Government of India were to remain legal tender in Pakistan.

[4] The order also allowed these notes to bear inscriptions of Government of Pakistan in Urdu and English, to be circulated from 1 April 1948.

For the first seven months following partition, currency issued by the RBI and the Government of India continued to circulate in Pakistan.

[4] Concurrently, the arrangement for the RBI to supply inscribed Indian notes to Pakistan was terminated on 30 June 1948.

[4] In January 1961, the currency was decimalised, with the rupee subdivided into 100 pice, renamed (in English) paise (singular paisa) later the same year.

5/- coin with a reduced size and weight and having a golden colour, made from a composition of copper-nickel-zinc,[citation needed] and also in 2016 a Rs.

50/- coin to celebrate the 550th birthday of Guru Nanak and in tribute of opening of new Gurdwara of Kartarpur, Pakistan.

[4] On 14 December 1963, the State Bank of Pakistan started operating its printing press, eventually taking over all national banknote production.

[4] Later, the 1-rupee note was modified to include a purple back with pink and blue under-print, similar to the De La Rue design.

[4] Subsequently, these notes were printed by the PSPC, with the change in production source identifiable by variations in the serial number font.

[4] In 2024 was released that Pakistan plans to roll out new banknotes of all denominations, the new currency notes would be of different colors, distinct serial numbers, design and include "high security features."

"If it is received well by the public, plastic currency will be introduced in other denominations," Ahmed stated (The denominations to be redesigned include Rs 10, 50, 100, 500, 1000, and 5000).Governor Ahmed also confirmed that there are no plans to cancel the Rs 5,000 note, despite suggestions from some members of the Senate committee, including Mohsin Aziz, who argued that the high-denomination note facilitates corruption.

Pakistan put foreign exchange controls in place in 1949, restricting the export and import of currency except for when needed for Hajj in Saudi Arabia.

The note was signed by the former governor of State Bank of Pakistan Raza Baqir and was made available to the public from September 30, 2022.

[22][23] On July 4, 2023, State Bank of Pakistan (SBP) Governor Jameel Ahmad introduced a commemorative Rs.

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.

In response, SBP spokesperson Abid Qamar posted a video on the central bank’s official Twitter account, reassuring the public that the Rs.

[25][26] 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.

[30] Initially, the Indian and Pakistani rupees were at parity until sterling was devalued in 1949, in which India followed suit but Pakistan did not.

Since the United States dollar suspension in 1971 of convertibility of paper currency into any precious metal, the Pakistani rupee has been fiat money.

The rupee was pegged to British Pound 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.

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.79/20 against the US dollar.

[31] The major reasons for this depreciation were huge current and trade accounts deficits that had built up since the credit boom in Pakistan after 2002.

Due to rising militancy in the Khyber Pakhtunkhwa province and its tribal areas, foreign direct investment began to fall, and the structural problems of the balance of payment were exposed; foreign exchange reserves fell disastrously to as low as US$2 billion.

[citation needed] The rupee continued to slowly decline until the start of 2018 when it began to rapidly devalue.

[citation needed] 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.