Pakistan Rupee

Overview

The Rupee is the official currency of Pakistan. The currency is managed by the Bank of Pakistan, the main financial institution of the nation.

Economy

• The economy of Pakistan has endured decades of domestic political feuds, a fast-growing population, varying levels of overseas investment, and an expensive, ongoing border dispute with India.
• Significant macroeconomic amendments beginning in 2000, in particular privatizing the banking sector, have helped the economy.
• In 2005, the World Bank named Pakistan the top reformer in its area and among the top 20 reformers globally.
• The central financial institution is trying to tighten money policy while still encouraging growth.
• Recurring international worker remittances are helping to build foreign exchange reserves, however the country faces a growing current account deficit due to the high reliance on imports. The increasing trade deficit could draw down these reserves and slow GDP growth in the near future.

History

• The word Rupee is from the Sanskrit word rup or rupa, which means silver in most Indo-Aryan dialects.
• The Pakistani Rupee was put into circulation in 1947, after the nation became independent from British Rule.
• For some time after independence, Pakistan used Indian cash and banknotes with Pakistan stamped on them.
• The current cash and banknotes were issued beginning in 1948. (Seems to contradict the second bullet.)
• Similar to the Indian Rupee, the Pakistan Rupee was originally divided into sixteen annas, each composed of four pice or 12 pie.
• The Pakistan Rupee was decimalized on January 1, 1961 and partitioned into a hundred pice; the name was changed to pais later the same year.