Pakistani Rupee (PKR)

Pakistani Rupee Basic Concepts

The Pakistani Rupee is the official currency of Pakistan with the ISO code PKR and the symbol ₨. It is issued and managed by the State Bank of Pakistan and is the central medium of economic transactions in the country.

Countries and Regions of Use

The Pakistani Rupee circulates mainly within Pakistan as legal tender for day-to-day transactions, business activities and government finances. It may also be used informally on a small scale in some border areas of neighboring countries.

Units and Denominations

The Pakistani rupee uses the decimal system, with 1 rupee equaling 100 paisa. Banknotes come in denominations of 10, 20, 50, 100, 500, 1,000 and 5,000 rupees, while coins are available in denominations of 1, 2, 5 and 10 rupees. The different denominations bear national historical figures and cultural symbols.

Historical Background

The Pakistani rupee is derived from the British Indian rupee, which was officially established as legal tender after Pakistan's independence in 1948. It was pegged to the British Pound in the early days, but later underwent several adjustments to the exchange rate regime, including linkage with the US dollar and market-based floating, in order to cope with the challenges of the economy and changes in the balance of payments.